Wednesday, August 23, 2006
College loan provider SLM Corp. -- commonly known as Sallie Mae -- said Wednesday it completed its acquisition of Needham-based college savings plan administrator Upromise Inc. for undisclosed terms.
The transaction was originally announced in June. At that time, SLM said the deal was not expected to materially affect its earnings this year or next year.
Upromise is the largest administrator of so-called Section 529 programs. Savings in 529 plans -- the name is a reference to the federal tax code -- grow tax-deferred, and withdrawals are tax-free when used for education.
The company has contracts to administer Section 529 college savings plans in Arkansas, Colorado, Iowa, Missouri, Nevada, New York and North Carolina.
Members of Upromise also earn rebates from thousands of grocery stores, gas stations, restaurants and retail stores that are deposited into Section 529 plans. Some 7 million people participate.
Tom Anderson will remain as Upromise's chief executive, leading more than 300 employees at the Needham location, Sallie Mae said.