Fidelity Investments has announced plans to buy a software development company that provides learning management systems, as the fund giant looks to broaden the capabilities of its big human resources outsourcing business.
The Boston company announced Thursday it has entered into a nonbinding letter of intent to buy Teds, an Atkins, Va., software development and consulting company that supplies learning management systems and performance management and workforce management products and services.
The companies said they are negotiating definitive agreements for the purchase. The transaction is expected to close by yearend.
Fidelity would operate Teds as an independent business unit from the latters Virginia offices. The company would be integrated with Fidelitys other human resources outsourcing units. In October, Fidelity announced it had bought the global human resources and payroll software applications of IBM Corp.
Caroline Boyd, a senior vice president at Fidelity Employers Services Co., said the deal would let Fidelity extend its integrated human resources outsourcing services into the emerging market for outsourced learning and training administration. Fidelity supplies human resources administration and employee benefits solutions to more than 16 million employees in more than 11,600 retirement, pension, health and welfare, payroll, and stock programs.