CHARLOTTE, NC (PRWEB) March 31, 2005
Robert L. Johnson, founder of Black Entertainment Television (BET) and majority owner of the NBA Charlotte Bobcats and WNBA Charlotte Sting, is making a significant equity investment in a company that promises to fundamentally change the way millions of Americans roll over their retirement accounts.
Under the agreement, Johnson would become a key shareholder and become chairman of the board of RolloverSystems. Johnson will be the majority investor in a round of financing totaling several million dollars.
Johnson said he felt the companyÂs technology and supporting services Â which automate retirement account rollovers for individuals directly and through their employers or financial advisors Â has the power to innovate the financial services industryÂs retirement account management process. That, he said, is a powerful concept.
ÂRolloverSystems has a transformative opportunity, and that is very appealing,Â said Johnson. ÂI believe this is the right solution delivered at the right time, and I believe in the RolloverSystems team and the opportunity to invest in a minority owned company.Â
RolloverSystems was founded by CEO Reginald Bowser, who most notably was on the original team of LendingTree, Inc., the company credited with automating and streamlining the way borrowers connect with prospective mortgage lenders. With RolloverSystems, Bowser and his team have created a platform that facilitates quick electronic rollovers of retirement accounts, which today can take up to two months for consumers to execute. Last year more than 10 million Americans had the opportunity to roll over their 401(k), 403(b) and other retirement accounts into IRAs due to a job transition.
ÂWe started this company to provide a much needed solution in the financial services equation. Mr. JohnsonÂs investment and the addition of his experience, and his leadership role as chairman of our board, represent a vital moment of validation for our company and our strategy,Â said Bowser.
RolloverSystems is also well-positioned to provide a much-needed solution to companies who need to comply with a new federal law which took effect March 28th. The new law, which was part of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA), prohibits employers from cashing out former employees' 401(k) accounts with balances between $1,000 to $5,000. The measure was signed by President Bush in June 2001 and is being administered by the U.S. Labor Department.
Johnson is one of the most successful entrepreneurs in American business history. Johnson founded and managed BET for 25 years and was the majority owner of BET Holdings until 2000, when he sold it to Viacom, Inc. in a $3 billion deal.
In 2003, Johnson purchased the NBA Charlotte Bobcats and WNBA Charlotte Sting, becoming the first African-American NBA franchise owner. Johnson serves on the boards of several Global 100 companies, including US Airways Group, LoweÂs Companies and Hilton Hotels Corporation.
Johnson joins RolloverSystemsÂ founding group of investors. The group has a diversified background as senior financial services industry executives and includes W. James Tozer Jr., who was former President, Prudential-Bache Securities and former senior executive at both Citibank and Marine Midland Bank, and Richard Field, former Senior EVP of Bank of New York and former Chairman of MasterCardÂs U.S. board. Tozer and Field were original investors and board members of LendingTree, Inc.
RolloverSystems is the leading provider of technology-based 401(k) and 403(b) rollover products and services for financial institutions, plan sponsors, and HR technology companies. The company helps financial institutions capture new Rollover IRA customers and selectively retain corporate retirement plan assets as Rollover IRAs. In addition, RolloverSystems helps plan sponsors and plan providers save time and money by outsourcing rollover transactions and enabling more terminated participants to select a rollover option. The company operates the only independent, objective platform that matches retirement plan participants with a network of top-tier financial institutions. For more information on RolloverSystems, please visit http://www.rolloversystems.com and/or http://www.rollovermarket.com.
About The RLJ Companies
The RLJ Companies is a privately-held holding company founded, owned, and led by Chairman and CEO Robert L. Johnson, the Founder of Black Entertainment Television. The RLJ Companies holds interests in a diversified portfolio of companies that are designed to generate positive shareholder value through superior strategic planning and operational excellence. The current RLJ portfolio includes: RLJ Development, LLC, a privately held hotel and real estate investment and development company which owns ten Hilton-branded hotels and two Marriott-branded properties in major markets in North America and is the largest African-American wholly-owned hotel company in the U.S; RLJ Urban Lodging Fund, a fund that invests assets for major private and public pension funds in the real estate sector, and the NBA Charlotte Bobcats and WNBA Charlotte Sting. In addition, the RLJ Companies has active investments in restaurants, media and entertainment, gaming, financial services, and healthcar!
e. For more information on The RLJ Companies, please contact Lisa W. Pickrum, Executive Vice President, at 202-715-8442 or firstname.lastname@example.org.
This press release was distributed through eMediawire by Human Resources Marketer (HR Marketer: http://www.HRmarketer.com) on behalf of the company listed above.
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