Mississauga, Ont.-based Smart Employee Benefits Inc. has announced it has acquired Aon Hewitt Inc.’s mid-market health and welfare administration business in Canada.
The administration business represents 48 clients with more than 250,000 plan members across Canada, according to a news release. As part of the deal, Smart Employee Benefits is acquiring several technology platforms and will take on about 150 employees from across Canada and India.
“This is a benchmark transaction in developing SEB’s benefits processing business,” said John McKimm, president and chief executive officer of Smart Employee Benefits.
Read: Aon to sell benefits administration and HR outsourcing platform
“We believe SEB’s technology expertise will add significant value to the clients of the admin business in Canada. We are looking forward to a strategic business relationship with Aon Hewitt on future business initiatives.”
The companies didn’t disclose the financial terms of the deal, which closed on March 31. In a news release, Smart Employee Benefits hinted at further moves in the employee benefits area to come. ”This transaction with Aon Hewitt is one of multiple transactions SEB will be executing in 2017 in the health benefits processing space,” said Mohamad El Chayah, president of SEB Administrative Services Inc.
The deal follows Aon Hewitt’s move to sell its human resources administration business and operating platform to investment firm Blackstone for U.S.$4.3 billion in February. At the time, the consulting firm noted it would continue to deliver pension and benefits administration to mid-market Canadian clients.