REG - XPS Pensions Group - NPT Strategic Partnership with SEI

XPS PensionsAnnouncement

14/07/2023 07:15

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RNS Number : 9958F  XPS Pensions Group PLC  14 July 2023

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

14 July 2023

XPS Pensions Group plc

("XPS" or the "Group")

 

XPS Announces National Pensions Trust Strategic Partnership with SEI

XPS Pensions Group plc is pleased to announce that it has entered into an
option agreement to sell XPS Pensions (Nexus) Limited, principal employer and
scheme funder of the National Pensions Trust ("NPT"), to SEI(®) (the
"Transaction") with the intention to create a market leading defined
contribution proposition for employers and pension scheme members. The deal
creates a strategic partnership between XPS and SEI, under which XPS will
provide wide ranging services to continue to support NPT and SEI.  The
transaction is subject to regulatory approval.

The total cash consideration payable to XPS upon completion following
regulatory approval is up to £42.5 million, comprising of £35.0 million
initial consideration and deferred earn-out consideration of up to £7.5
million based on business performance over two years.

The Transaction positions the SEI Master Trust to continue delivering
best-of-breed service at increased scale in partnership with NPT. XPS will
continue to provide high-quality pensions administration and consultancy
services to NPT and SEI which will ensure continuity of service to the members
and clients. SEI will benefit from enhanced opportunities in the growing
master trust space, and XPS will benefit as a key service provider to SEI.

The consideration will be satisfied in cash. Net proceeds from the Transaction
will be used to repay the Group's debt facilities.

Gross assets attributable to NPT were £2.5 million (including the regulatory
capital cash account) and the adjusted EBITDA contribution from NPT to the XPS
Group in the year ended 31 March 2023 was £0.9 million.

The Transaction constitutes a Class 2 transaction for the purposes of the
FCA's Listing Rules and is expected to complete upon receipt of regulatory
approval.

 

Commenting on the Transaction:

 

Paul Cuff, Co-CEO of XPS Pensions Group, said:

 

"We are delighted to announce the agreement we have reached with SEI, which
will create a market leading master trust for the benefit of our clients and
their members.  Under the partnership we have agreed, both firms will be
bringing the best of what we each do to continue this exciting journey.

 

More widely, the XPS business continues to perform strongly in the new
financial year, with continued high levels of demand for our services and
confidence in our financial performance."

 

Steve Charlton, Managing Director of Defined Contribution, EMEA and Asia, for
SEI's Institutional business, added:

 

"As we continue to expand the SEI Master Trust, we believe we are
well-positioned to provide the premier service, investment management, and
technology solutions for our members. Our expertise-combined with the addition
of XPS' high-quality pension administration services-will further enable us to
deliver improved member outcomes. We look forward to welcoming the National
Pensions Trust clients and team to SEI and their members into a partnership
with the SEI Master Trust, so we can build upon both of our success."

 

About National Pension Trust

 

Founded in 2009, NPT is a leading master trust in the UK with over 60,000
members.

 

About the SEI Master Trust

 

The SEI Master Trust provides a fully-bundled solution for employers
delivering defined contribution (DC) schemes to approaching 250,000 members.
The Master Trust encompasses investment management, member communications and
administration, as well as utilising a manager-of-managers platform
established over 25 years ago and overseen by more than 115 in-house
investment experts. With its global scale and 16-year heritage as one of the
first U.K. Master Trust providers, the SEI Master Trust offers a complete
member journey, guiding members through retirement and beyond.

 

Enquiries:

 

XPS Pensions Group

 

Snehal Shah, Chief Financial Officer       +44 (0)20 3978 8626

Paul Cuff, Co
CEO                                +44 (0)20
3978 8625

 

Canaccord Genuity (Joint Broker)

 

Adam
James
+44 (0)20 7523 8000

Patrick
Dolaghan

 

RBC Capital Markets (Joint Broker)

 

James
Agnew
+44 (0)20 7653 4000

Jamil
Miah

 

Media Enquiries

 

Camarco

 

Gordon
Poole
+44 (0)20 3757 4997

Rosie
Driscoll
+44 (0)20 3757 4981

 

The person responsible for making this announcement is Zoe Adlam (Company
Secretary)

 

Notes to Editors:

 

XPS Pensions Group is a leading pension consulting and administration
business focussed on UK pension schemes. XPS combines expertise, insight and
technology to address the needs of over 1,500 pension schemes and their
sponsoring employers on an ongoing and project basis. We undertake pensions
administration for over 1 million members and provide advisory services to
schemes and corporate sponsors in respect of schemes of all sizes, including
81 with assets over £1bn.  Deloitte Corporate Finance acted a lead financial
adviser to XPS Pensions Group.

 

 

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