Mattioli Woods subsidiary City Pensions Limited has acquired the pension administration business from UK Wealth Management Limited, itself a wholly owned subsidiary of Ashcourt Rowan, for a total cash consideration of up to £355,000.
This sum comprises an initial consideration of £275,000 (subject to adjustment for the value of working capital acquired) plus deferred consideration of up to £80,000 (subject to certain revenue and client retention targets being met during the two years following completion).
The acquisition is being funded from the group’s existing cash resources.
The deal includes the trade and certain assets of Pension Administration Ltd, 100 per cent of the share capital of Ropergate Trustees Ltd from Pal Group Holdings Ltd, 100 per cent of the share capital of Simmonds Ford Trustees Ltd and 100 per cent of the share capital of Acomb Trustees Ltd from ATL Group Ltd, all of which are wholly owned indirectly by UKWM.
They were all acquired by Ashcourt Rowan at the end of last year.
The business provides trustee and administration services to over 400 Sipps and small self-administered pension schemes, with total funds under trusteeship of over £190m.
The acquisition is expected to be earnings enhancing in the first full year of ownership, following the realisation of synergies from combining the assets and activities with those of Mattioli Woods.
The deal makes it the second Sipp provider to acquire a rival since the Financial Conduct Authority published its relaxed rules on capital adequacy this time last week.
Ian Mattioli, chief executive of Mattioli Woods, said: “City Pensions provides administration services to Ashcourt Rowans’ Sipp and Ssas clients, as well as other IFA organisations throughout the UK.
“It was acquired by Mattioli Woods in August 2010, acquiring over 1,088 schemes, which has grown to 2,245, whilst the assets under administration have increased from £300m to over £750m. By working with other professional intermediaries and clients, we have a high-quality, well resourced, and fully compliant administration platform.
“We continue to see legislation affecting these markets and creating opportunities for consolidation, which is a key part of our growth strategy.”
Jonathan Polin, group chief executive of Ashcourt Rowan, added: “The administration of Sipp and Ssas schemes acquired with UKWM is non-core to our business, and this sale follows that announced last year of Ashcourt Rowan’s own Sipp and Ssas business.
“During the last 12 months we have found Mattioli Woods to be a sound strategic partner with the expertise, scale and systems to give the very best Sipp and Ssas administration services to our clients.”
