The deal, which is subject to regulatory approvals, is expected to support EdgeCo’s subsidiary American Trust in providing better retirement solutions in the US
EdgeCo Holdings, a provider of technology-enabled retirement solutions for financial institutions, has agreed to acquire Unified Trust, a Kentucky-based retirement plan provider and fiduciary, for an undisclosed amount.
EdgeCo announced that after the acquisition of Unified Trust, it will become a subsidiary of its affiliate American Trust.
Unified Trust serves financial intermediaries, corporate clients and retirement plan investors along with individual and institutional investors through its wealth management division.
The deal, which is subject to customary regulatory and shareholder approvals, is claimed to be a commitment by EdgeCo and its subsidiaries to provide retirement solutions of high-quality, to small and medium-sized retirement plan market and the advisors that serve them.
EdgeCo is planning additional acquisitions in the future
The deal marks EdgeCo’s third acquisition and it plans to have additional deals in the future as part of its growth strategy.
EdgeCo Holdings CEO John Moody said: “Over the past three years, we’ve made tremendous progress in creating a differentiated offering in the retirement space for financial intermediaries and their clients, with a focus on delivering a high level of personal service backed by a robust technology platform.
“We are very excited to bring Unified Trust into the fold. Their extremely talented employees, as well as their expertise and technology, will greatly expand the offering at American Trust and propel us to a new level.”
After the acquisition, Unified Trust founder Gregory Kasten will serve in the capacity of an executive role and on the board of directors of American Trust.
Kasten said: “Beyond the opportunity to expand our services and solutions, it was also very important to me that both organisations share the same outcomes-focused philosophy and fiduciary mind-set.
“Our two companies are incredibly well-aligned and as a combined force, we will be in a position to make a major statement in the financial services industry for years to come as well as ensure that we will continue to improve the financial outcomes of investors.”
Once the deal is closed, the existing staff will be retained and also expected to grow as the combined company will expand its reach nationally, serving from its offices in Memphis, Tennessee, Lexington, Kentucky and recordkeeping services through an affiliate in Dubuque, Iowa.