Acquisition of American Trust Retirement
February 4, 2019

First Mercantile Trust, a subsidiary of EdgeCo Holdings, Announces Agreement for Strategic Acquisition of American Trust Retirement

  • First Mercantile Trust continues to augment its value proposition to financial intermediaries
  • EdgeCo Holdings will continue to grow the American Trust Retirement platform, investing to expand its national coverage and service offering

Memphis, TN, February 4, 2019 – First Mercantile Trust Company (“FMT”) has entered into a definitive agreement to acquire American Trust Retirement (“ATR”) from American Trust & Savings Bank. FMT is a subsidiary of EdgeCo Holdings, Inc. (“EdgeCo”), a leading provider of technology-enabled retirement solutions for financial intermediaries and their clients. The transaction, which remains subject to customary consents and regulatory approvals, reflects a continued commitment by EdgeCo and its subsidiaries to provide best-in-class retirement solutions to the small and mid-sized retirement plan market.

“We set out on a path to make strategic acquisitions in the retirement space in order to provide a differentiated offering for financial intermediaries and their clients,” said John Moody, Chief Executive Officer of EdgeCo. “Delivering on that commitment, we are excited about our acquisition of ATR and the people, expertise, and technology that will now be part of the broader retirement solutions offered by EdgeCo subsidiaries.”

“We believe that the advisors and their respective clients will win in a big way as a result of this acquisition,” said Kurt Wedewer, who will be joining the firm as a Regional President of EdgeCo’s retirement services business. “The infrastructure, capabilities, and culture that EdgeCo and its subsidiaries bring to the table for our staff and financial intermediaries is significant. We look forward to expanding our value proposition to advisors, plan sponsors, and participants on a national scale by being part of the EdgeCo family of companies.”

Upon closing of the transaction, ATR will become a division of FMT, which was acquired by EdgeCo in November 2018. ATR’s collective investment trust, discretionary trustee and 3(38) investment management capabilities, as well as its dedicated, client-centric service model, are highly complementary with the existing business of FMT.

“In the crowded retirement plan marketplace, we are excited to deliver a differentiated and innovative value proposition built exclusively for retirement plan advisors and professionals,” said Micah DiSalvo, Chief Revenue Officer of EdgeCo. “With the acquisition of ATR, we will become a leader in offering something fundamentally different in the small to mid-market that will help intermediaries and recordkeepers alike win and retain retirement plan business in a meaningful way.”

While FMT is located in Memphis, TN, moving forward, ATR will continue to be located in Dubuque, Iowa. As of the definitive agreement, no positions are expected to be lost. Both FMT and ATR anticipate the Dubuque operation will grow as the acquisition expands the company’s national reach and services. Shared values and vision make this union a complementary match that will yield enhanced value to financial intermediaries, plan sponsors, and participants.

About EdgeCo Holdings, Inc.

Through its subsidiaries, EdgeCo is a leading provider of best-in-class technology-enabled
solutions for financial intermediaries and their clients. For over four decades, EdgeCo
companies have provided a suite of technology and support services including full service
retirement plan administration, brokerage, advisory, and trust and custody services to a diverse
national client base of financial intermediaries. This client base includes registered
representatives, investment advisors, and other financial intermediaries including retirement
plan recordkeepers, TPAs, bank trust departments, broker dealers, and insurance companies.
The firm services approximately $100 billion in client assets under custody or administration and
more than 8,000 financial advisors and 500 financial institutions.