Ascensus has entered into a definitive agreement to acquire Vanguard Group’s individual 401(k), multiple participant SEP and SIMPLE IRA plans business, the record keeper announced in a news release April 16.
The transaction, which is expected to close in the third quarter, will boost Ascensus’ overall retirement plans to nearly 280,000 and bolster its commitment to serving small businesses, it said in the news release.
Terms of the agreement were not disclosed.
As part of the deal, Ascensus will assume record-keeping and client servicing for Vanguard’s current lineup of SIMPLE, Multi-SEP and individual 401(k) plans for owner-only businesses. It will also provide custodial, trustee, transaction processing, tax reporting and other services to the plans.
Plan participants will continue to have access to Vanguard's mutual funds via the Ascensus platform.
“This acquisition offers small-business employers continued access to Vanguard’s investment strength and the technology, expertise and operational excellence that clients have come to expect from Ascensus,” said Nick Good, Ascensus’ president, in the news release.
This is the second acquisition agreement that Ascensus has reached in less than two weeks. On March 28, it announced its intention to buy the record-keeping business of Mutual of Omaha in a deal that is also expected to close in the third quarter.
The acquisitions follow the reorganization in February of Ascensus’ retirement business into four segments, one of which included small businesses.
As of Dec. 31, Ascensus administered more than 154,000 retirement plans serving more than 14 million participants and had more than $760 billion in assets under administration.
