Cross-border financial services provider STM Group has agreed to acquire the portfolio, net assets and trustee companies of the Sipp and Ssas businesses from Mercer for a fixed consideration of £3.34m ($4.02m, €3.94m).
It will add some 2,100 self-invested personal pensions (Sipps) and 700 self-administered pension schemes (Ssass) to the UK operation and the deal will double the revenue generated from its UK personal pensions business Options UK.
The acquisition will also give Options access to a network of intermediaries who have introduced clients to Mercer.
STM will retain Mercer’s office premises in Cardiff, as well as existing staff members.
The deal is expected to be completed around 31 August 2022. It is not subject to regulatory approval as STM is not acquiring the regulated entities themselves, however both parties have kept the Financial Conduct Authority (FCA) informed of progress throughout the transaction process.
The acquisition will be funded from existing financial resources and the remaining available debt facility previously arranged with STM’s bank.
Changing marketplace
Alan Kentish, chief executive of STM, said: “We are delighted that Mercer has chosen STM as the new home for its Sipp and Ssas business, previously acquired as part of its own acquisition of JLT. Both ourselves and Mercer are committed to ensuring a seamless transition for clients, intermediaries, staff and other stakeholders.
“The revenue generated by this portfolio will mean that our Options personal pension solution business in the UK will effectively double in size and will give us a new centre of excellence for our Ssas business.
“The Sipp marketplace continues to see change and out of this comes opportunity to differentiate our proposition. Unlike most Sipp providers, STM also has a UK workplace pension solution and this in itself allows us to offer a full suite of retirement savings options to anyone, no matter where they are within their career path.”
