Alerus Financial Corporation has entered into an agreement to acquire a Colorado-based company offering retirement plans.

The agreement to acquire Retirement Planning Services Inc., which does business as RPS Plan Administrators and 24HourFlex, was announced on Dec. 2 and is the first acquisition for Alerus since filing its initial public offering in September 2019. The agreement is expected to be immediately profitable for Alerus, while expanding its footprint into the Rocky Mountain region. The terms of the transaction are not being released.

“The acquisition of RPS and 24HourFlex is a strategic investment that allows us to add talent and increase market share in the desirable Rocky Mountain region while further strengthening our growing retirement and benefits division,” said Alerus President and CEO Randy Newman in a news release. “Alerus is a scaled consolidator and this expansion is in line with our long-term One Alerus growth strategy to expand our national presence and provide diversified financial services to clients across the nation.”

Based in Littleton, Colorado, RPS provides retirement and health benefits administration for more than 1,000 plans, 48,000 plan participants, 300 COBRA clients and 10,000 COBRA members and brings more than three decades of experience to Alerus’ retirement and health benefits services division.

The acquisition is expected to be completed by Dec. 18 and will increase Alerus’ assets under administration and management to about $31.5 billion. The all-cash transaction is anticipated to have a positive impact on Alerus’ earnings per share, adding an estimated $0.08 in 2021 and $0.13 in 2022. The transaction is the company’s 11th acquisition in the retirements and benefits sector since 2003 and builds Alerus’ health benefits scale in a consolidating industry.

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“Alerus, RPS and 24HourFlex share complementary business models and core values that focus on client service, industry expertise and growth, making this a great partnership for both ownership groups,” said Brian Overby, president of Alerus Retirement and Benefits.

Nathan Carlson, president of RPS, and Matt Poppe, principal of RPS, will join Alerus to facilitate a smooth transition and guide the company’s continued retirement and benefits services growth throughout the region.

In an email to the Herald, Katie Lorenson, chief financial officer at Alerus, said the over $60 million in capital raised after the initial public offering was filed in September 2019 and enabled the company to grow its franchise and expand its national presence. RPS, she said, is a great addition to the company, and the new partnership will allow it to continue to grow and enhance client services.

“To complete our first post-IPO acquisition in just over a year, during a global pandemic, speaks volumes about the strength of our earnings, the stability of our business model and the many talented professionals who serve our clients,” Lorenson said.

According to Alerus, the company provides “innovative and comprehensive financial solutions to businesses and consumers through four distinct business segments — banking, retirement and benefit services, wealth management and mortgage."

Alerus traces its roots to 1879, when it began as the Bank of Grand Forks, and was one of the first banks chartered in Dakota Territory.