VanLONDON (Alliance News) - XPS Pensions Group PLC on Wednesday announced the GBP4.8 million acquisition of a subsidiary of Royal London Mutual Insurance Society Ltd.
The business being bought, entirely in cash, is RL Corporate Pensions Services Ltd, which provides actuarial, consulting, and administration services to 150 smaller defined pensions schemes with 8,000 members.
As of December 31, the business had gross assets of GBP700,000 and revenue of GBP3.9 million. Earnings before interest, tax, depreciation, and amortisation in 2018 was GBP800,000.
XPS co-Chief Executive Paul Cuff commented: "This acquisition is consistent with our strategic focus on becoming the pre-eminent pensions consultancy in the UK and improves our capability and offering to smaller pension schemes.
"We see this as particularly important, given the increasing need for smaller pension schemes to have access to high-quality advice and technology-enabled solutions in a cost-effective way. We welcome our new clients and our new colleagues to our business."
XPS shares were 1.9% lower on Wednesday morning at a price of 157 pence each.
Xps Pensions (XPS)