Human resources consulting firm Morneau Shepell is purchasing Ceridian's health and welfare benefits administration business in the United States, and will gain 100 employees and 65 clients in the transaction. The deal is expected to close on July 31, 2015.
In a statement issued on July 22, Morneau Shepell indicated that Ceridian's former clients will continue to work with the same system and support staff, while the existing administrative processes including files to/from payroll and to carriers/vendors will remain in place.
René Beaudoin, Morneau Shepell’s executive vice-president for the United States region and chief technology officer, says that the acquisition is part of the firm’s ongoing efforts to expand south of the border. "While stand-alone health and welfare administration is no longer a strategic focus for Ceridian, it is one of Morneau Shepell's core businesses," he comments. "This deal will enhance Morneau Shepell's ability to compete against large U.S. competitors and to service organizations of all sizes across North America."
The purchase represents less than two per cent of Morneau Shepell's revenue and is therefore not expected to have a material impact on its financial performance in 2015.