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FOR IMMEDIATE RELEASE
CONTACT:
Dennis Sheehan
Executive Vice President & Chief Financial Officer
(973) 812-8600
The BISYS Group, Inc.
Nasdaq: BSYS
www.bisys.com
BISYS(R) ACQUIRES UNIVERSAL PENSIONS, INC. (UPI)
- Acquisition Expands BISYS' Position as Leading Provider
of Retirement Plan Services, and Significantly Enhances Client Base
and Related Solutions -
LITTLE FALLS, N.J. (June 1, 2001) -- BISYS announced today the acquisition of
Minnesota-based Universal Pensions, Inc. (UPI) for approximately $85 million.
This all cash transaction will be accounted for under the purchase method of
accounting.
UPI is a leading provider of retirement plan services and related business
solutions, currently supporting thousands of financial institutions, including
securities firms, banks, and mutual fund, insurance, and trust companies.
Founded in 1975, UPI has evolved into a full-service, industry-leading provider
of retirement plan solutions. This acquisition materially expands BISYS'
retirement plan services to an unmatched breadth of technology-based products
and outsourcing services, and dramatically increases the number of clients BISYS
supports.
EXPANDS INDUSTRY-LEADING POSITION IN DYNAMIC 401(K) MARKETPLACE
UPI currently supports more than 4,000 401(k) plans with administration and
recordkeeping services, in partnership with a number of the nation's leading
financial services firms. Based on the UPI acquisition, BISYS will provide
recordkeeping services to approximately 15,000 small to mid-size 401(k) plans
with approximately 1.3 million participants, materially expanding its market
share in the fastest growing segment of the 401(k) industry.
EXPANDS RETIREMENT SERVICES OFFERING
This acquisition enables BISYS to offer an array of new retirement services to
its financial services clients, including UPI's prototype plan documents, which
are currently used by approximately 4 million IRAs and several thousand
employee-sponsored retirement plans. BISYS also will offer UPI's
industry-leading retirement plan education programs, which train more than
12,000 retirement professionals annually, and maintain UPI's toll-free help line
for ongoing access to industry expertise and assistance.
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According to Lynn Mangum, BISYS' chairman and CEO, "This acquisition positions
BISYS as a recognized leader in retirement plan services. Integrating the proven
solutions and unique core competencies offered by two industry leaders will
enable BISYS to offer an unprecedented array of products, services, and
expertise. Our integrated and expanded retirement plan services will materially
benefit our collective financial services and investment management partners,
the companies sponsoring retirement plans, and ultimately their plan
participants." Mangum also noted that based on the expanded services, BISYS'
Plan Services division will be renamed Retirement Services to reflect its
broader scope.
Arnold Johnson, CEO of UPI, reported, "Integrating the industry-leading
capabilities of BISYS and UPI will provide the retirement services industry with
a truly unique, holistic approach. BISYS will be the only firm supporting
virtually every component of a sophisticated retirement plan infrastructure,
including prototype plan design and maintenance, plan administration, forms and
documents, customized marketing and sales support, staff training and
development, and solid technology platforms enhanced with contemporary
Internet-based solutions. BISYS is uniquely positioned to efficiently and
effectively support the explosive growth and the dynamic requirements of the
retirement services industry."
BISYS' decision to solidify its market leadership and materially expand its plan
services by acquiring UPI was influenced by the growing outsourcing trend in
this technology-dependent industry. Integrating and leveraging UPI's products
and services enhances BISYS' ability to further capitalize on the growing
outsourcing trend as more firms outsource their retirement services to eliminate
the capital, human, and technology resources required to develop and maintain
internal infrastructures. "We see unprecedented outsourcing opportunities in the
401(k) retirement marketplace," stated Mangum.
ABOUT BISYS
The BISYS Group, Inc. (Nasdaq: BSYS), headquartered in Little Falls, N.J.,
supports more than 15,000 financial institutions and corporate clients through
three integrated business units. Its INVESTMENT SERVICES GROUP administers and
distributes more than 120 families of mutual funds with approximately 1,100
portfolios, provides retirement plan services to approximately 15,000 companies
in partnership with 35 of the nation's leading bank and investment management
companies, and offers regulatory consulting services. The INSURANCE AND
EDUCATION SERVICES GROUP provides distribution solutions for annuities and life,
long-term care, disability, and special risk insurance products; offers
certification and continuing education training for insurance and
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investment professionals; and provides licensing-related software products and
services. BISYS' INFORMATION SERVICES GROUP provides information processing and
check imaging solutions to approximately 1,000 financial institutions.
Except for the historical information contained herein, the matters discussed in
the press release are forward-looking statements within the meaning of the
safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are subject to risks and uncertainties that may
cause actual results to differ materially, including but not limited to
economic, competitive, governmental and technological factors affecting the
Company's operations, markets, services and related products, prices and other
factors discussed in the Company's periodic filings with the Securities and
Exchange Commission.
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