Deals & People December 13, 2007

Schwab Sub Snares RIA Back Office Outsourcer

Raleigh, NC-based Schwab Performance Technologies (SPT) has entered into an agreement to acquire RIA back office outsourcing provider Etelligent Consulting, Inc.
Reported by
Based in Overland Park, Kansas and founded in 2000, Etelligent Consulting, Inc. provides back office outsourcing services to more than 100 independent investment advisory firms.
SPT, a subsidiary of The Charles Schwab Corporation, provides interfaces with more than 40 different broker-dealers and makes its portfolio management software available to advisory firms regardless of where they custody assets. According to a press release, more than 3,000 independent RIA firms use SPT’s flagship product PortfolioCenter. Etelligent uses PortfolioCenter as a key part of its business model, allowing advisors to outsource major administrative responsibilities in their back office like portfolio data management and performance reporting.
The acquisition is expected to close in the first quarter of 2008, subject to customary closing conditions. Financial terms of the transaction were not disclosed.
“This strategic acquisition underscores Schwab’s commitment to providing advisors with the tools and support they need to succeed in an industry that is growing at a rapid rate,“ said Charles Goldman, executive vice president and head of Schwab Institutional, a leading provider of custodial, operational and trading support for independent RIAs. “Removing back office challenges is especially critical as more advisors leave established firms and strike out on their own. By providing opportunities to outsource administrative tasks, we can help new and established advisors focus on their clients and accelerate the growth of their businesses.’
More information is available at www.schwabpt.com.
Deals & People December 13, 2007

Sun Life Sells US RK Biz to The Hartford

The Hartford has made another acquisition – this time Sun Life Retirement Services (U.S.), Inc. (RSI), a 401(k) plan administration business.
Reported by

“After a thorough review, we determined that the best course of action is to focus on parts of the U.S. retirement and wealth market where we have or can achieve competitive advantage, scale, and a market leadership position,” said Bob Salipante, President, Sun Life Financial U.S. “Among a number of important strengths, I am delighted the depth of talent and experience of RSI’s staff was a key factor in The Hartford’s decision to acquire the business.’

According to a press release, RSI provides administration services to bundled and unbundled defined contribution plans, serving approximately 6,000 retirement plan sponsors and 465,000 retirement plan participants in the United States.

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Sun Life Financial’s wealth strategy includes its presence in asset management through its subsidiary Massachusetts Financial Services Company (MFS). The announcement noted that MFS has “strong distribution relationships with both RSI and The Hartford which will continue when the RSI business moves to The Hartford.’

The transaction is expected to close in the first quarter of 2008.

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