PE Tech Report

NEWSLETTER

Like this article?

Sign up to our free newsletter

Vestwell to acquire BNY Mellon’s Sumday

Vestwell, a fintech engine powering leading workplace savings programmes, is to acquire Sumday, a subsidiary of The Bank of New York Mellon Corporation (BNY Mellon) managing and administers 529 college savings, 529A ABLE, and Secure Choice/Auto-IRA state-sponsored savings programs.

The terms of the deal have not been disclosed.

BNY Mellon will act as the preferred servicing agent for the state programs managed by Vestwell, providing custody, fund accounting, record-keeping services, and where applicable, sub-advisory services through its affiliate Lockwood Advisors, Inc. (an investment adviser registered in the US under the Investment Advisers Act of 1940). Vestwell will continue to play an integral role as part of BNY Mellon’s investment portfolio of fintech companies to enable client growth strategies and better business outcomes. 

Once the deal closes, Sumday will become a Vestwell subsidiary and will be rebranded Vestwell State Savings. Its technology, overall program management responsibilities and team will transition to Vestwell, led by Douglas Magnolia, who will assume the role of President, Vestwell State Savings.

“Adding Sumday under the Vestwell umbrella accelerates our mission to deliver workplace savings programs to all, while deepening our relationship with one of the most respected financial institutions in the world,” says Aaron Schumm, Founder and CEO of Vestwell. “BNY Mellon has been a strong supporter of Vestwell since our early days, and we are fully aligned in helping address the savings gap felt across the country, taking the initiative to help employers and savers reach their savings goals.”

“Since we began our relationship with Vestwell and invested in its growth in 2019, we have been consistently impressed with its focus and execution in the space. This deal helps Vestwell further scale the business,” says Roman Regelman, CEO of Asset Servicing and Head of Digital for BNY Mellon. “Clients will continue to leverage best-in-class solutions, seamless integration capabilities, and the safety and security offered through BNY Mellon’s open and modular platform, and have a modern technology-driven experience delivered by Vestwell.”

Like this article? Sign up to our free newsletter

MOST POPULAR

FURTHER READING

Featured