Royal London has offloaded its pension administration subsidiary, RL Corporate Pension Services, to XPS Pensions Group.
The all-cash deal is valued at £4.8m. Pursuant to the terms of the agreement, all 46 employees of the sold business will move to XPS’ Edinburgh office.
RL Corporate Pension Services (RLCPS) offers actuarial, consulting, and administration services to 150 defined benefit pension schemes that cover approximately 8,000 scheme members.
Royal London intermediary CEO Isobel Langton said: “It has been paramount for us in this process to find a partner who can provide a fantastic service to RLCPS’s clients both now and into the future as the regulatory challenges these clients face will only increase.
“We are confident that these clients will benefit from XPS’s UK pensions market knowledge, and the technology and expertise that they can bring to bear. At the same time, we feel that XPS, with its strong employee culture, is a fantastic home for transferring employees.”
XPS co-CEO Paul Cuff said that the deal is part of its plan to emerge as a “pre-eminent” pensions consultancy in the UK market.
Acquisition of Royal London subsidiary will enhance the buyer’s capability and allow company to provide smaller pension schemes, Cuff added.
With £114bn funds under management, Royal London services 8.8 million policies in force with the help of 3,893 employees.