United States Pension Services, Inc., a closely held company, has been acquired by First Data Investor Services Group, Inc., a business unit of First Data Corporation. Bicknell Advisory Services, Inc. initiated this transaction and negotiated on behalf of the seller.
U.S. Pension, headquartered in Tampa, is a third-party administrator of 401(k) and other retirement plans with additional offices in Charlotte, Los Angeles, San Diego, and San Mateo. U.S. Pension provides plan design, administration, recordkeeping and compliance testing services through alliances with prominent financial services firms for over 4,000 corporate plan sponsors representing 170,000 participants.
Bicknell Advisory Services led an investor group in the acquisition of U.S. Pension from The Dun & Bradstreet Corporation in 1996. Over the course of two years, U.S. Pension established profitable operations, solidified its alliance partner strategy, upgraded its facilities and technology, and restructured operating procedures to improve efficiency.
Bicknell Advisory represented U.S. Pension in the evaluation of corporate development opportunities, including acquisitions, a roll-up IPO and a sale. The sale strategy was selected to assure a partner capable of providing state-of-the art services to clients, excellent career opportunities for employees and as the means to return value to the investors in the shortest period of time.
First Data, which already provides U.S. Pension's daily recordkeeping software, will integrate the 185-person U.S. Pension staff with the over 400 people it already has dedicated to the retirement services market. The acquisition allows the buyer to increase market share, improve its small plan administration capability and gain scale required to support continuing investment in technology.