Vestwell announced on Friday that it is acquiring Gradifi Solutions, a student loan benefits provider.
Gradifi Solutions offers workplace education solutions, including financial literacy and student loan refinancing tools, as well as student loan repayment programs.
The deal will add new products to the Vestwell platform, including programs that manage and allocate funds to student debt, contribute to education savings accounts, and refinance student loans. Vestwell acquired Gradifi Solutions from Morgan Stanley, who had inherited the business as part of its acquisition of E*TRADE Financial.
“We’re delighted to bring Gradifi Solutions onto the Vestwell platform and offer a full suite of financial wellness programs to meet the needs of our clients,” said Aaron Schumm, founder and CEO of Vestwell. “As millions of Americans carry student loan debt, it’s essential for employers to provide accessible tools and programs that enable individuals to pay down their student debt while saving for retirement simultaneously. Bringing Gradifi Solutions into Vestwell accelerates our product roadmap initiative alongside a top-tier client base. Through this acquisition, Vestwell is realizing its vision of enabling all savings in the workplace and beyond, with more offerings coming soon.”
“We’ve partnered with Vestwell for white label recordkeeping, and we’re thrilled to extend that relationship through their acquisition of Gradifi,” added Brian McDonald, head of Morgan Stanley at Work. “We look forward to bringing our clients and participants a more robust and comprehensive education savings offering as part of this deal.”
The terms of the deal were not disclosed, but a statement by Vestwell added that it will include Gradifi Solutions’ technology, clients, and team members as part of the acquisition.
The recent deal is one of many new moves at Vestwell in 2023. Earlier this year, the firm announced partnerships with The Carson Group, J.P. Morgan, Gusto, and more. Just last month, the firm announced it would expand its pooled and multiple employer plan (MEP) solutions to offer affordable 401(k) plan options to small and medium-sized business (SMB) clients.
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