Ascensus announced Monday that Stone Point Capital, the Greenwich, Conn.-based private equity firm specializing in financial services, and GIC, Singapore’s sovereign wealth fund, have entered into a definitive agreement to acquire Ascensus from its current private equity ownership group.
Current owners Genstar Capital and Aquiline Capital Partners will maintain a minority stake in Ascensus.
The transaction is expected to close in the third quarter of 2021, following regulatory approvals and other customary closing conditions. Terms of the transaction were not disclosed, although Bloomberg reported the deal is worth approximately $3 billion, citing people familiar with the matter.
“We are delighted to partner with Stone Point Capital and GIC, who share our confidence in the strategic importance and growth potential of the retirement, education, and health savings markets,” David Musto, president and CEO of Ascensus, said in a statement. “Their commitment will only strengthen our ability to continue investing in new capabilities, technology, and solutions; enhance our already world-class client service levels; and attract top talent to our organization.”
“We have followed Ascensus’ success for some time and see tremendous opportunities for further growth and positive impact on the industry,” Chuck Davis, CEO of Stone Point Capital, added. “We believe Ascensus is a true leader in providing technology, expertise, and partnership to enable savings across the critical areas of retirement, education, and healthcare. We look forward to partnering with their management team and talented associates to support their continued growth, solutions innovation, and strong service delivery.”
Barclays and Goldman Sachs acted as co-financial advisors to Ascensus in connection with this transaction. J.P. Morgan Securities LLC acted as sole financial advisor to Stone Point Capital. Willkie Farr & Gallagher LLP acted as legal counsel to Ascensus. Simpson Thacher & Bartlett LLP acted as transactional counsel to Stone Point Capital. Kirkland & Ellis LLP acted as financing counsel to Stone Point Capital.
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.