Acquisition of Reliance Financial Corporation Supports FIS Focus on Wealth Management
FIS™ (NYSE: FIS), Platform Securities' parent company and the world’s largest provider of banking and payments technology, announced that its subsidiary, FIS Wealth Management Services, Inc., has signed a definitive agreement to acquire Atlanta-based Reliance Financial Corporation including its subsidiaries Reliance Trust Company, Reliance Trust Company of Delaware and Reliance Integrated Solutions LLC.
The resulting combination will bring together two industry leaders with deep domain expertise and create a full-service wealth management and retirement offering encompassing technology, selective operational functions, full back-office operations outsourcing, and retirement trust and fiduciary services.
“Wealth management remains a strategic growth and investment area for FIS, and this acquisition demonstrates our commitment to delivering the most flexible outsourcing solution set in the trust, wealth management and retirement industry,” noted Anthony Jabbour, executive vice president, North American Financial Institutions, FIS. “Our goal is to continually provide direct benefits to our clients. After the closing of this transaction, we believe our clients would greatly benefit from efficiencies driven by new BPO offerings as well as new business servicing capabilities in the retirement and trust markets.”
Founded in 1975, Reliance has more than $138 billion in assets under management and administration. The company is one of the fastest-growing independent trust companies in the U.S. servicing roughly 5 percent of all 401(k) plans in the United States, with more than 24,000 retirement plan clients to date.
Commenting on the transaction, Jim Maxwell, Reliance chairman, CEO and president stated, “There is continued growth in market demand for a full-service trust operations BPO solution, and this resulting combination will be uniquely qualified to capitalize on these opportunities.”
Upon closing, FIS will pay approximately $110 million in cash to acquire 100 percent ownership interest in Reliance, including its subsidiaries Reliance Trust Company, Reliance Trust Company of Delaware and Reliance Integrated Solutions LLC. The transaction is subject to regulatory approvals and contractual closing conditions. FIS expects the transaction to close during the third quarter.
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