NEW YORK--(BUSINESS WIRE)--Mercer, a global consulting leader in advancing health, wealth and career, has reached an agreement with Morneau Shepell to acquire Mercer’s stand-alone US large market health and defined benefit (DB) administration business. The agreement does not include Mercer’s Mercer Marketplace 365, Mercer Marketplace 365+, mid-market health benefits administration co-sourcing, and mid-market DB administration clients or health benefit administration for Mercer’s global clients who have employees in the United States. The deal is expected to close in the third quarter of the year.
“We believe Morneau Shepell is the ideal firm to acquire our US large market health benefits and DB pension administration business,” said Louis Gagnon, Mercer’s President, US & Canada. “Morneau Shepell, as an industry leader in health and pension benefits administration, shares our commitment to outstanding client service and participant experience. This agreement will also allow Mercer to increase our strategic focus and efforts on Mercer Marketplace 365+, our end-to-end health benefits platform as well as offerings that include both consulting and administration for DB mid-market clients.”
“This planned acquisition is in line with our strategy to grow our business profitably in the US market and will further solidify Morneau Shepell’s strong track record of outsourcing expertise in health and DB pension benefits administration in the United States,” said Stephen Liptrap, President and Chief Executive Officer, Morneau Shepell. “We have worked successfully with Mercer in the past and we are confident our clients will see their services continue uninterrupted. We also look forward to welcoming our new employees, who will further strengthen our complement of highly experienced benefits professionals.”
Mercer’s stand-alone US large market health benefits and DB administration business has 73 clients and more than 1.9 million participants. Mercer colleagues who service these clients will also transition to Morneau Shepell as part of this acquisition. Mercer remains committed to providing health and defined benefit administration in other countries where local dynamics and Mercer market position align.
Nomura Securities International, Inc. is acting as the exclusive financial advisor to Mercer on the transaction.
Mercer delivers advice and technology-driven solutions that help organizations meet the health, wealth and career needs of a changing workforce. Mercer’s more than 23,000 employees are based in 44 countries and the firm operates in over 130 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), the leading global professional services firm in the areas of risk, strategy and people. With 75,000 colleagues and annualized revenue approaching $17 billion through its market-leading companies including Marsh, Guy Carpenter and Oliver Wyman, Marsh & McLennan helps clients navigate an increasingly dynamic and complex environment. For more information, visit www.mercer.com. Follow Mercer on Twitter @Mercer.