Mercer announced today that it has acquired Innovative Process Administration, LLC (IPA), a privately owned, health and benefits administration technology provider. This acquisition plays a key role in Mercer's ongoing commitment to become the benefits administration provider of choice for health and benefit plans of all sizes and market segments. Terms of the agreement were not disclosed.
“During our long-term relationship with IPA we have seen first-hand the quality and professionalism of the IPA organization and its employees as well as the value the firm brings to our clients”
Headquartered in Cleveland, Ohio, IPA is a leading provider of health and benefits recordkeeping and employee enrollment technology.
"This acquisition allows us to add a key operational asset - one with a proven track record of service excellence and innovation - to our outsourcing platform," said Jeff Miller, President & Group Executive of Mercer's Outsourcing business.
Mercer will leverage IPA's capacity, technology, talent and management to build on and accelerate its current expansion into the health and benefits mid-market outsourcing space. "Integrating IPA reinforces the important role health and benefits administration plays in our long-term growth and strategy," said Mr. Miller.
Mercer's acquisition of IPA will not only drive growth within the outsourcing business, but for Mercer's Health & Benefits Consulting business, as well. "This acquisition is an important addition to our ability to provide enhanced consulting and benefits brokerage bundled with co-sourced or fully outsourced benefit administration and enrollment capabilities, which is what our clients are asking for," said Dave Rahill, US Mercer H&B Region Leader.
IPA is a natural fit for Mercer, as it provides the underlying technology for Mercer EasyEnroll, which currently supports over 75 clients. IPA supports another 80 clients directly and over 1,000 clients through its sales channels.
"During our long-term relationship with IPA we have seen first-hand the quality and professionalism of the IPA organization and its employees as well as the value the firm brings to our clients," noted Mr. Miller. "This acquisition, which combines our expertise in benefits outsourcing and consulting with an impressive group of professionals from IPA, places Mercer in a unique position to effectively provide value-added services to all of our health and benefits clients."
Mercer will operate the acquired business under the IPA name. James Zedella, IPA's current President and Chief Executive Officer, will join Mercer as H&B Small and Mid-Market Business Leader. He will report to Michael Sternklar, COO and US Business Leader for Mercer's Outsourcing business.
"This transition combines two leading benefits administrators who can leverage each others' cutting-edge technology and management teams to further meet their clients' needs," said Mr. Zedella. "Because we have had a productive and collegial relationship with Mercer for some time, we know that this transaction will be smooth and valuable for clients and employees of both organizations. I am looking forward to joining a global leader in benefits administration and utilizing IPA's technology and people to help Mercer meet its strategic goals."
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