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."
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