GRAND FORKS, N.D. • Alerus Financial Corp. has completed its acquisition of Retirement Planning Services Inc., which does business as RPS Plan Administrators and 24HourFlex, Alerus announced on Monday.

“We are thrilled to welcome the clients and employees of RPS and 24HourFlex to Alerus,” said Alerus President and Chief Executive Officer Randy Newman. “Their teams add incredible depth of knowledge to our retirement and benefits division and will further strengthen Alerus’ position in this consolidating industry.

"This acquisition is illustrative of our long-term One Alerus growth strategy, which focuses on expanding our national presence and providing diversified financial services to clients across the country.”

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 30 years of experience to Alerus’ robust retirement and health benefits services division, the company said when announcing the news.

RPS is based in Littleton, Colo., and expands Alerus’ geographic footprint to the Rocky Mountain region.

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According to Alerus, a leading independent provider of retirement and benefit administration services, the transaction represents the company’s 11th acquisition in the retirements and benefits vertical since 2003 and builds the company’s health benefits scale in a consolidating industry. The transaction also increases Alerus’ assets under administration and management to approximately $31.5 billion.

Terms of the transaction are not being released by the company.

The all-cash transaction is anticipated to be immediately accretive to Alerus’ GAAP earnings per share, adding an estimated $0.08 in 2021 and $0.13 in 2022. Consistent with prior retirement services acquisitions, a substantial portion of the premium paid will be allocated to a customer account intangible and amortized up to 10 years, contributing to a cash-GAAP earnings difference while restoring the tangible equity utilized to complete the acquisition.

Alerus said that to ensure a seamless transition, Nathan Carlson, president of RPS, and Matt Poppe, principal of RPS, will join Alerus to help guide its continued retirement and benefits services growth throughout the Rocky Mountain region.

“Our companies share great symmetry, making this a desirable partnership for both ownership groups,” Brian Overby, president of Alerus Retirement and Benefits, said in a prepared statement. “Together we are able to provide enhanced services to clients, expand our footprint, and combine our shared industry expertise to benefit the client experience.”

“We are excited to combine our industry expertise and regional presence with Alerus to position our employees and clients for long-term success," Carlson added. "We are stronger together and we look forward to what the future holds.”