SAN FRANCISCO - The Charles Schwab Corp., seeking to better serve pension plan administrators, has acquired TrustMark Inc., a Charlotte, N.C., developer of 401(k) retirement plan accounting software.
Financial terms of the deal - announced this week - were not disclosed, although Charles Schwab officials said TrustMark had $7 million in revenues last year.
More than 300 installations of the acquired firm's 401(k) record keeping software are in use at bank trust departments, pension administrators, or mutual fund companies, officials said.
"TrustMark is the market leader in daily record keeping software for 401(k) plans," said John Philip Coghlan, executive vice president, Schwab Institutional. "We see important opportunities to serve the growing number of 401(k) plans, and the acquisition of TrustMark is a significant milestone in that strategy."
Founded in 1983, TrustMark will operate as wholly owned subsidiary of Charles Schwab. The company's founder and president, Robert Van Art, and its 66 employees will remain in Charlotte, Schwab officials said.
"We're very pleased to become part of the Schwab organization," Mr. Van Art said. "Combining our expertise with the resources and marketing power of Schwab will yield exciting new developments in both the products we offer and the markets we serve."
Officials said TrustMark's main product, called MBA/3Daily, is already compatible with Schwab's PC-based program, which is used by administrators for daily valuation of 401(k) plans in custody through Schwab Institutional.