Auto-enrolment pension provider Smart Pension has bought a “significant” stake in data transfer technology firm Pensionync.
Pensionsync, which was launched last year, builds middleware technology linking payroll and auto-enrolment pensions, a service already offered by Smart Pension.
Since its launch, Pensionlync has raised £2.6m in two equity rounds. Smart Pension did not disclose the size of its stake, but managing director Will Wynne told financial adviser it was a “significant six figure sum”.
While Smart Pension has its own payroll interface competing with that of Pensionsync, Mr Wynne justified investing in Pensionsync by pointing to its team’s “deep knowledge” of payroll.
“While we’re investing heavily in our own direct payroll integration interface solutions and via our new adviser platform, we also think it’s important to identify and invest in key adjacent innovation, even if it’s not within our own company,” he said.
He said a specific requirement of the deal was that Smart Pension would have no control over Pensionsync’s business direction.
Pensionsync chief executive Will Lovegrove said Smart Pension’s investment would not change his company’s position as “provider-neutral”.