Xps Pensions Share News (XPS)

(Sharecast News) - Pensions actuarial, consulting and administration business XPS Pensions Group has, subject to certain conditions, agreed to acquire the assets of Kier Pensions Unit from Kier Business Services - a division of Kier Group - it announced on Tuesday.The London-listed firm said the total consideration for the acquisition was up to a maximum of £3.5m in cash.Completion of the acquisition, and the maximum consideration payable by the company, remained conditional on a threshold percentage of Kier Pensions' existing clients agreeing to transfer their contract to XPS.The acquisition was being funded from cash resources held by the XPS group.It explained that Kier Pensions provided third-party pension administration services to public sector clients, including around half of the police forces in the United Kingdom and to Middlesbrough Borough Council.The assets were non-core to the Kier Group, and the transaction formed part of the 'Future Proofing Kier' programme.Kier Pensions did not prepare separate audited accounts.Based on financial information obtained during the due diligence process, the gross assets of the business as at 30 June last year totalled £0.84m.The profit contribution attributable to the assets, for the 12 month period ended 30 June 2017, was £1m.XPS said the acquisition would add to the "continued growth" of its pensions administration business, XPS Administration, and would give it - for the first time - a significant presence in the market for public sector third party administration, in addition to its existing presence in the market for private sector pension schemes.The acquisition was also expected to add a number of "important clients" to the XPS portfolio of administration only schemes, and take the total number of members XPS administered above 800,000.In addition, 70 employees based in Middlesbrough would join the group.The acquisition was expected to add approximately 4% to XPS' revenues."XPS is continuing to move towards our goal of becoming the clear differentiated alternative to the Big 3 in the pensions consultancy sector," said the company's co-chief executive officer Paul Cuff."This acquisition strengthens our leading position in the pensions administration market and gives us a strong foothold in the public sector third party administration market and enhances our regional presence."We look forward to providing our high-quality service to our new clients and welcoming our new colleagues to our group."