Fintech recordkeeper Vestwell has announced plans to acquire Sumday, a subsidiary of BNY Mellon that manages and administers 529 college savings, 529A ABLE, and Secure Choice/Auto-IRA state-sponsored savings programs.
Once the deal closes, Sumday will become a Vestwell subsidiary and will be rebranded Vestwell State Savings. Its technology, overall program management responsibilities and team will transition to Vestwell, led by Douglas Magnolia, who will assume the role of President, Vestwell State Savings, according to the Nov. 2 announcement. The firm will also add nearly 800,000 savers and 17,000 small businesses to their roster, becoming program managers for nearly $20 billion in assets.
“Adding Sumday under the Vestwell umbrella accelerates our mission to deliver workplace savings programs to all, while deepening our relationship with one of the most respected financial institutions in the world,” Aaron Schumm, Vestwell Founder and CEO, said in a statement. “BNY Mellon has been a strong supporter of Vestwell since our early days, and we are fully aligned in helping address the savings gap felt across the country, taking the initiative to help employers and savers reach their savings goals.”
BNY Mellon will act as the preferred servicing agent for the state programs managed by Vestwell, providing custody, fund accounting, recordkeeping services, and where applicable, sub-advisory services through its affiliate Lockwood Advisors.
“Since we began our relationship with Vestwell and invested in its growth in 2019, we have been consistently impressed with its focus and execution in the space,” added Roman Regelman, CEO of Asset Servicing and Head of Digital for BNY Mellon. “This deal helps Vestwell further scale the business.”
The terms of the deal were not disclosed.
