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Ascensus Scoops Up Newport Group

Practice Management

The current wave of recordkeeper consolidation continues, with the Nov. 3 announcement that Ascensus has entered into a definitive agreement under which Newport Group will merge with the firm.

David Musto, president and CEO of Ascensus, will serve as CEO of the combined company, while Greg Tschider has stepped down as CEO of Newport. To ensure continuity of leadership, operations and client service through closing, Laura Ramanis—who has served as Newport’s chief operating officer since 2014—has been named interim CEO. 

She will be supported by Kurt Laning, executive vice president, Non-Qualified and Insurance Solutions, along with Newport’s senior management team. Ramanis and Laning will join the Ascensus executive leadership team and remain with the unified company post-closing, according to the announcement. The firms hope to be “operating as one team by next spring.”

The transaction is expected to close in the first quarter of 2022, subject to receipt of regulatory approvals, including review and non-objection by the South Dakota Division of Banking and review and approval by the New Hampshire Banking Department, and satisfaction of other customary closing conditions.

According to a press release, the newly combined organization will offer a broader set of capabilities and products to benefit institutional partners, clients, advisors, and savers. Specifically that with their qualified and non-qualified retirement plan services, fiduciary consulting services, and corporate and bank-owned life insurance practices, Newport will expand the solutions and expertise Ascensus provides to its clients and advisor partners, while Newport’s clients will gain greater access to unique tax-advantaged savings solutions across retirement, education and health. Moreover, the firms say that the companies’ respective investments in technology, digital capabilities, and analytics will deliver “enhanced value to clients, expand client relationships, and create better outcomes for savers.”

“Ascensus and Newport are both respected leaders in the marketplace—and well-known for service excellence, deep expertise, investment independence, and purpose-built technology,” said Musto. “We expect the service platform investment, product expansion, and enhanced capabilities our union will deliver to be well-received by our collective clients. As a combined company, we’ll be able to even further advance our mission of helping individuals save for what matters.”

Musto added, “I want to commend Greg Tschider and his team for their leadership and success in building a strong, highly respected, and winning company in our industry.”

“This is a tremendous opportunity for our two companies and our people,” said Ramanis. “Our union confirms the hard work of our dedicated employees and partners. Joining with Ascensus provides additional resources to continue the expansion of services, and I am excited to see the new ways that our combined associate teams will work together for our clients.”

According to the announcement, the combination will:

  • Expand the tax-advantaged savings participant base of more than 15 million people across the country
  • Increase Ascensus-administered assets under administration to more than $700 billion when combined with Newport’s business
  • Serve more than 150,000 retirement plans
  • Provide management to $184 billion in government savings accounts (including 529 plans, ABLE savings accounts, and state-facilitated retirement programs), more than 700,000 health and flexible savings and COBRA accounts, nearly 300,000 COLI/BOLI policies, and more than 140,000 non-qualified retirement plan participant accounts

Evercore acted as exclusive financial advisor to Newport in connection with the transaction.