Mercer Acquires Callan in Investment Consulting Consolidation

February 17, 2009 (PLANSPONSOR.com) - The investment consulting market now has a new gorilla-sized competitor with which to contend as Mercer on Tuesday announced an agreement to acquire long-time industry player Callan Associates.

A joint announcement from the New York-based Mercer and the San Francisco-based Callan said Callan will be merged with Mercer’s investment consulting business and that the resulting approximately 1,270-employee organization¬†will represent one of the largest players in that niche.

According to the announcement, the transaction is expected to close near the end of the first quarter of 2009. The terms of the agreement were not disclosed.

“This transaction demonstrates Mercer’s commitment to invest in businesses that provide long-term strategic growth and in high-quality investment consulting services that benefit clients,” said M. Michele Burns, chairman and chief executive officer of Mercer, in the announcement.

“[B]y combining forces with Mercer, a global leader, we can offer clients a wider range of tools and resources, top-notch professional advice and enhanced research, educational and quantitative services,” added Ronald D. Peyton, chairman and chief executive officer of Callan Associates, in the announcement.

Mercer’s existing investment consultant business features about 1,100 employees in 41 offices around the world. The announcement said Callan currently has U.S. offices in San Francisco, Atlanta, Denver, Chicago, and Florham Park, New Jersey.

The combined business will continue to have a presence in those cities in conjunction with Mercer’s U.S. investment consulting offices in New York, Atlanta, Boston, Chicago, Dallas, Los Angeles, Philadelphia, Princeton, Richmond, San Francisco, Seattle, and Washington, D.C.

Mercer is a wholly owned subsidiary of Marsh & McLennan Companies, Inc.  Founded in 1973, Callan provides research, education, decision support, and advice to an array of institutional investors through five distinct lines of business: Fund Sponsor Consulting, Independent Adviser Group, Institutional Consulting Group, Callan Investments Institute, and the Trust Advisory Group.

«