CUNA Mutual in Deal for Record Keeper

CUNA Mutual Group has struck a deal to buy CPI Qualified Plan Consultants Inc., a retirement plan record keeper.

With the acquisition, CUNA Mutual will service more than 7,500 retirement plans with assets under administration nearing $10 billion. CPI is the largest employee-owned, third-party administrator in the United States, according to CUNA Mutual. It administers a variety of employee benefit plans, including 401(k), profit sharing, money purchase, 403(b) retirement plans, 457(b), flexible benefit and nonqualified deferred compensation retirement plans. CPI also provides payroll services, as well as 403(b) common remitter and compliance services.

Incorporated in 1972, the Great Bend, Kan.-based CPI provides administrative services to more than 3,600 clients nationwide with plan assets under administration of approximately $5 billion. The company has more than 400 employees. CUNA Mutual currently serves more than 4,000 plans and 129,000 plan participants. The sale was expected to close June 30. Terms of the cash transaction were not disclosed.

“We are very excited about this acquisition. It's an extremely good fit-culturally, operationally and financially,” said Kevin Thompson, CUNA Mutual senior vice president of asset accumulation products. “CUNA Mutual and CPI each bring many complementary strengths to the table. This acquisition demonstrates our commitment to the retirement plan marketplace and is a critical first step in supporting our rapid expansion into new markets.”

CPI and CUNA Mutual have many similarities. The majority of their business is in the micro- and small-plan market (up to $10 million in assets). CUNA Mutual was ranked No. 1 in 2008 in investment and record keeping by 401kExchange.com, while CPI earned No. 2 and No. 3 rankings in those same categories. No immediate changes are expected in either organization, according to CUNA Mutual.

“Our customers will not notice any changes,” Thompson said. “We will operate as business-as-usual to avoid any disruption. Over time, we will look for ways to leverage each other's strengths.”
Bob Dema, CEO of CPI, said the acquisition will build on each of the company's strong points.”Joining with a firm like CUNA Mutual adds financial strength that we'll need to continue to grow and flourish,” Dema said. “Plus, both of our firms focus on providing great service and keeping customers happy.”

–msamaad@cutimes.com