Health and benefits provider OneDigital has acquired aggregation-firm Resources Investment Advisors, both companies announced Tuesday.
The acquisition is OneDigital’s first foray into the retirement and wealth management space, which had until now focused mainly on providing health insurance benefits to employers.
The deal includes a number of well-known advisors and advisory practices, including Bukaty Companies Financial Services, 401k AIM, Cafaro Greenleaf, Capstone Advisory Group, Chepenik Financial and Strategic Retirement Group.
The acquisition represents the “largest assemblage of deals in the company’s history” with 13 in all and is the first to bring retirement plan consulting and wealth together with healthcare benefits under the OneDigital brand, the company said in a statement.
“For the past few years, we have been looking to partner with a company that would help us expand upon the solutions we offer our customers and provide access to growth capital, enabling us to offer both an affiliation and acquisition option to firms looking to join our platform,” Vincent Morris, president of Resources, explained, counting OneDigital’s benefits expertise, scale, corporate culture and growth as reasons for the merger.
M&A movement
“Vince and Resources will now run this bigger and growing business,” added Dick Darian, CEO of M&A consulting firm Wise Rhino Group, which advised OneDigital and Resources in the transaction. “Deals like this are not only a wonderful opportunity to monetize the advisor’s practice, but it’s almost the next career step to be able to build something bigger, different and special.”
Founded in 1987, Resources is an SEC-registered investment advisory firm that helps employers build and implement a retirement plan that meets the needs of their organization and employees.
Resources offers retirement plan sponsors a consistent investment process to enhance employee retirement readiness, while also helping organizations ease the administrative burdens associated with managing retirement plans.
Currently, Resources provides advice to 2,600 employer-sponsored retirement plans and a total of $45 billion in assets under management.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
