‘Doubling the size of UK Options personal pension solution business’
STM Group Plc (AIM: STM), the cross border financial services provider, is pleased to announce that it has entered into an agreement to acquire the portfolio, net assets and trustee companies of the SIPP and SSAS businesses, from Mercer Ltd, for a fixed consideration of £3.34 million (the “Acquisition”). Completion is planned for 31 August 2022.
The Acquisition will be funded from existing financial resources and the remaining available debt facility previously arranged with the Group’s bank.
The Acquisition is not subject to regulatory approval as STM is not acquiring the regulated entities themselves, however both parties have kept the FCA informed of progress throughout the transaction process.
Highlights of the Acquisition:
Commenting on the Acquisition, Alan Kentish, Chief Executive Officer 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 business is well run by the team in Cardiff. This allows us to implement an integration plan that can dovetail with our overall plans in relation to changing our operating model to improve our margins, post significant investment in our IT infrastructure. I am delighted to welcome the team to the STM family.
“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.
“I look forward to updating the market as to our progress on this exciting next stage of the STM journey.”