Keystone Insurers Group has acquired the benefits division of Indiana-based Synergy Insurance Group, saying the purchase will better position it against larger firms.

The renamed Keystone Insurance and Benefits Group (KIBG), headquartered in Mishawaka, Ind., a wholly owned subsidiary of KIG, will provide the sales, customer service and administrative functions associated with employee and individual benefits exclusively to franchisees and their clients, according to the company. KIBG franchisees offering benefits will be offered an expanded platform of services as a result of the deal.

“This acquisition will significantly enhance our employee and individual benefits services,” said George Wynne, KIG’s executive vice president of corporate development, in a statement. “It will enable Keystone’s 250-plus locations in Pennsylvania, North Carolina, Virginia, Indiana and Ohio to effectively compete with the largest and most sophisticated employee benefit organizations.”

Terms of the deal were not disclosed.

The new company will be run by KIBG President Michael Reddy, a 20-year veteran in the benefits market, and Billy Bridwell, serving as KIBG’s vice president.

“We are excited about the opportunity we have in front of us,” Reddy said. “By leveraging our core capabilities and technology with the relationships and local presence of our Keystone partners, we believe the value that we can bring to Keystone franchisees and their clients will be unparalleled.”

Headquartered in Northumberland, Pa., KIG is owned by its employees and franchise partners in five states, including Pennsylvania and Virginia, with premiums exceeding $1 billion, according to the company.