Peter Cahall, chief executive officer at Newport, said in a release that the deal was possible because the two retirement plan providers operate on the same recordkeeping platform and service delivery systems.
The Florida-based provider will allow Ceridian to continue offering its retirement plan services to its current total human resources outsourcing clients. The deal is set to close at the end of July.
“We are very pleased to have reached this agreement with Newport because it allows us to continue offering retirement services through a strategic alliance with a proven leader in retirement plan solutions,” said Ronald Turner, president and chief executive officer of Ceridian, in the release. “It also enables us to focus our efforts on strengthening our core operations, positioning us for greater flexibility to meet the growing and changing needs of our customers.”