Mercer Enters Agreement with Morneau Shepell to Acquire Its Stand-Alone US Large Market Health and Defined Benefit Administration Business

NEW YORK–(BUSINESS WIRE)–Mercer, a global consulting leader in advancing health, wealth and
career, has reached an agreement with Morneau Shepell to acquire
Mercer’s stand-alone US large market health and defined benefit (DB)
administration business. The agreement does not include Mercer’s Mercer
Marketplace 365, Mercer
Marketplace 365+, mid-market health benefits administration
co-sourcing, and mid-market DB administration clients or health benefit
administration for Mercer’s global clients who have employees in the
United States. The deal is expected to close in the third quarter of the
year.

“We believe Morneau Shepell is the ideal firm to acquire our US large
market health benefits and DB pension administration business,” said
Louis Gagnon, Mercer’s President, US & Canada. “Morneau Shepell, as an
industry leader in health and pension benefits administration, shares
our commitment to outstanding client service and participant experience.
This agreement will also allow Mercer to increase our strategic focus
and efforts on Mercer Marketplace 365+, our end-to-end health benefits
platform as well as offerings that include both consulting and
administration for DB mid-market clients.”

“This planned acquisition is in line with our strategy to grow our
business profitably in the US market and will further solidify Morneau
Shepell’s strong track record of outsourcing expertise in health and DB
pension benefits administration in the United States,” said Stephen
Liptrap, President and Chief Executive Officer, Morneau Shepell. “We
have worked successfully with Mercer in the past and we are confident
our clients will see their services continue uninterrupted. We also look
forward to welcoming our new employees, who will further strengthen our
complement of highly experienced benefits professionals.”

Mercer’s stand-alone US large market health benefits and DB
administration business has 73 clients and more than 1.9 million
participants. Mercer colleagues who service these clients will also
transition to Morneau Shepell as part of this acquisition. Mercer
remains committed to providing health and defined benefit administration
in other countries where local dynamics and Mercer market position align.

Nomura Securities International, Inc. is acting as the exclusive
financial advisor to Mercer on the transaction.

About Mercer

Mercer
delivers advice and technology-driven solutions that help organizations
meet the health, wealth and career needs of a changing workforce.
Mercer’s more than 23,000 employees are based in 44 countries and the
firm operates in over 130 countries. Mercer is a wholly owned subsidiary
of Marsh
& McLennan Companies (NYSE: MMC), the leading global
professional services firm in the areas of risk, strategy and people.
With 75,000 colleagues and annualized revenue approaching $17 billion
through its market-leading companies including Marsh,
Guy
Carpenter and Oliver
Wyman, Marsh & McLennan helps clients navigate an increasingly
dynamic and complex environment. For more information, visit www.mercer.com.
Follow Mercer on Twitter @Mercer.

Contacts

Bruce Lee
212 345 0553
Bruce.Lee@mercer.com