Key Takeaways
- • Morneau Shepell has agreed to acquire Mercer's standalone large market health and defined benefit (DB) pension plan administration business in the United States for approximately US$57 million.
- • The deal adds 73 Mercer large market health and DB pension plan administration clients in the US, covering approximately 1.9 million plan participants, along with the experienced teams servicing that client base.
- • The transaction extends Morneau Shepell's US footprint, which CEO Stephen Liptrap described as a step to solidify the firm as a leading provider of health and DB plan administration across the United States.
- • Mercer will retain large market health and benefits administration and mid-market DB pension administration when bundled with consulting and brokerage services, and will continue serving global clients with US-based employees.
- • The acquisition follows Morneau Shepell's 2012 purchase of Mercer's benefits and large market pension administration business in Canada, and its 2018 acquisition of LifeWorks.
Summary
Toronto-based HR consultancy Morneau Shepell has announced an agreement to acquire Mercer's standalone large market health and defined benefit pension plan administration business in the United States, according to Consulting.ca. The acquisition cost is approximately US$57 million.
Founded in 1966, Morneau Shepell delivers technology-enabled services supporting employees' mental, physical, social, and financial well-being. Its offerings span employee and family assistance, health and wellness, recognition, pension and benefits administration, retirement and benefits consulting, actuarial, and investment services. The firm has nearly 5,000 employees across North America, the UK, and Australia, and works with approximately 24,000 clients.
Through the transaction, Morneau Shepell expects to gain 73 of Mercer's large market health and DB pension plan administration clients in the US, representing approximately 1.9 million plan participants. The deal will also bring in the experienced teams that service this client base.
Stephen Liptrap, president and CEO of Morneau Shepell, said the planned acquisition is in line with the company's strategy to grow profitably in the US market and further solidify its position as a leading provider of health and DB plan administration across the United States. He added that the firm would have the capacity and expertise to deliver exceptional services to the newly acquired clients.
Mercer will continue to deliver large market health and benefits administration and mid-market DB pension administration services when bundled with consulting and brokerage offerings such as Mercer Marketplace 365 and 365+. It will also continue providing large market health and benefit administration services to global clients with US-based employees. Louis Gagnon, president of Mercer US and Canada, said he expects the transition to be seamless and that the two firms will work collaboratively to maintain quality service.
The deal builds on Morneau Shepell's history with Mercer, including its 2012 acquisition of Mercer's benefits administration and large market pension administration business in Canada. The consultancy also acquired employee well-being services firm LifeWorks last year, adding an integrated digital platform for employee assistance programs, engagement, rewards and recognition, and HR communications.
Founded in 1966, Morneau Shepell delivers technology-enabled services supporting employees' mental, physical, social, and financial well-being. Its offerings span employee and family assistance, health and wellness, recognition, pension and benefits administration, retirement and benefits consulting, actuarial, and investment services. The firm has nearly 5,000 employees across North America, the UK, and Australia, and works with approximately 24,000 clients.
Through the transaction, Morneau Shepell expects to gain 73 of Mercer's large market health and DB pension plan administration clients in the US, representing approximately 1.9 million plan participants. The deal will also bring in the experienced teams that service this client base.
Stephen Liptrap, president and CEO of Morneau Shepell, said the planned acquisition is in line with the company's strategy to grow profitably in the US market and further solidify its position as a leading provider of health and DB plan administration across the United States. He added that the firm would have the capacity and expertise to deliver exceptional services to the newly acquired clients.
Mercer will continue to deliver large market health and benefits administration and mid-market DB pension administration services when bundled with consulting and brokerage offerings such as Mercer Marketplace 365 and 365+. It will also continue providing large market health and benefit administration services to global clients with US-based employees. Louis Gagnon, president of Mercer US and Canada, said he expects the transition to be seamless and that the two firms will work collaboratively to maintain quality service.
The deal builds on Morneau Shepell's history with Mercer, including its 2012 acquisition of Mercer's benefits administration and large market pension administration business in Canada. The consultancy also acquired employee well-being services firm LifeWorks last year, adding an integrated digital platform for employee assistance programs, engagement, rewards and recognition, and HR communications.
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