Morneau Shepell has agreed to acquire the American health and welfare benefits administration business of Ceridian.
“While stand-alone health and welfare administration is no longer a strategic focus for Ceridian, it is one of Morneau Shepell’s core businesses,” says René Beaudoin, executive vice-president, U.S. region, and chief technology officer with Morneau Shepell.
“This deal will enhance Morneau Shepell’s ability to compete against large U.S. competitors and to service organizations of all sizes across North America,” he adds.
More than 100 Ceridian employees will join Morneau Shepell and 65 Ceridian clients will see their services continued uninterrupted under the Morneau Shepell banner.
This acquisition represents less than 2% of Morneau Shepell’s revenue and is not expected to have a material impact on the company’s financial performance in 2015.
In the past two years, Morneau Shepell has experienced 180% growth in the U.S.
The transaction is expected to close on July 31, 2015.