REG - XPS Pensions Group - XPS completes the sale of NPT to SEI

XPS PensionsAnnouncement

21/11/2023 07:00

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RNS Number : 0468U  XPS Pensions Group PLC  21 November 2023

21 Nov 2023

XPS Pensions Group plc

("XPS" or the "Group")

 

XPS completes the sale of National Pensions Trust to SEI

XPS Pensions Group plc is pleased to announce that following receipt of
necessary regulatory approvals, it has completed the sale of XPS Pensions
(Nexus) Limited, principal employer and scheme funder of the National Pensions
Trust ("NPT"), to SEI(®) (the "Transaction") creating 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 was announced in July 2023 with completion subject to
regulatory approvals.  The total cash consideration payable to XPS is up to
£42.5 million, comprising of £35.0 million initial consideration upon
completion and deferred earn-out consideration of up to £7.5 million based on
business performance over two years after completion. Proceeds from the
Transaction will be used to partially repay the Group's debt facilities.

Commenting on the Transaction:

 

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

 

"Everything we do is centered around helping members of pension schemes
receive the best outcomes and security in retirement. This goal has
underpinned the operation of National Pensions Trust for many years, and it is
a high-quality master trust that serves our clients, and most importantly, the
members, very well.

 

"Against the backdrop of an evolving and consolidating market, we have sought
a long-term strategic partner with whom we can each bring the best of what we
do. We're excited to continue supporting members with pensions administration
and consultancy through our strategic partnership with SEI-reinforcing our
shared commitment to ensuring continuity of service and stability for
members."

 

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

 

"Two years ago we shared our ambition for the SEI Master Trust to become the
market-leading master trust with the size and scale to deliver stability and
help members be more confident that their financial futures are secure. We
believe our acquisitions of the National Pensions Trust and the Atlas Master
Trust in 2021 bring us closer to those goals.

 

"Industry consolidation, supported by the Pensions Regulator, reduces the
number of smaller and sometimes less resilient schemes, bringing greater
stability to the pensions landscape. Greater stability can strengthen
propositions, and we believe our proposition has gone from strength to
strength. Employers choosing the SEI Master Trust and their employees will
benefit from this greater stability.

 

"We're thrilled to welcome the NPT colleagues and a trustee to the SEI team.
We also look forward to working with XPS in serving our collective clients and
delivering high-quality administration, improved investment outcomes, and
confidence for members that we are here to stay."

 

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 an end-to-end solution for employers delivering
defined contribution (DC) schemes. An independently-assured DC provision, the
SEI Master Trust encompasses investment management, member communications, and
administration. It also utilises a manager-of-managers program established
more than 25 years ago and overseen by more than 125 in-house investment
experts. With its global scale and more than 15-year heritage as one of the
first commercial U.K. master trust providers, the SEI Master Trust offers
customised solutions and 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

Alex
Orr

 

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

 

 

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.

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