AEGON buying Mercer book of business

AEGON, corporate parent of Transamerica with operations in Cedar Rapids, is planning to buy Mercer HR Services's defined contribution administration business in the United States.

The transaction, expected to close by the end of the year, will transition Mercer's defined contribution business to Transamerica Retirement Solutions, adding $71 billion in assets under management to bring the total to $216 billion.

Transamerica will add 400 employees of Mercer at offices in Norwood, Mass., and Houston, where the work is performed.

Gregory Tucker, senior vice president of Americas corporate communications at Transamerica, said the Mercer acquisition will not affect the company's operations in northeast and southwest Cedar Rapids that employ about 4,000. That makes the financial services provider the second-largest employer in the community after Rockwell Collins with about 8,500 employees.

'This is an important strategic development,” Mark Mullin, president and CEO of Transamerica, said in a statement. 'It further strengthens Transamerica's leading position in the U.S. retirement sector.

'This development supports our aim to further grow and diversify our customer base, while continuing to expand our offering of fee-based retirement solutions.”

Transamerica will become the preferred defined contribution record-keeping provider for Mercer's total benefit outsourcing and total retirement outsourcing clients.

Mercer Administration, which handles the outsourcing of human resources needs, such as health and retirement benefits, has an office at 2610 Northgate Dr, in Iowa City.