Mattioli Woods subsidiary City Pensions Limited has acquired Ashcourt Rowan’s pension administration business in a deal worth up to £1.3m.
The acquisition comprises the trade and certain assets of pension administration business Ashcourt Rowan Administration Limited, plus pension trustee companies Ashcourt Rowan Pension Trustees Limited and Robinson Gear Management Services Limited.
The combined businesses provide trustee and administration services to over 600 Sipp schemes and 150 SSAS schemes, with total funds under trusteeship of over £300m.
Mattioli Woods has agreed to pay an initial consideration of £700,000 plus a deferred consideration of up to £625,000 subject to certain revenue and client retention targets being met during the five years following completion.
In the year to 31 March 2012, ARAL generated a post-tax profit of £134,535 on revenues of £674,285. The estimated liabilities being acquired are £115,168.
Sipp and SSAS clients will continue to receive portfolio management and financial planning services from Ashcourt Rowan Asset Management and Ashcourt Rowan Financial Planning. However the administration of their pensions will be transferred to Mattioli Woods’ pension administration and trustee services arm City Trustees.
Mattioli Woods chief executive Ian Mattioli says: “Ashcourt Rowan has an excellent reputation for building first-rate client relationships. As financial markets change, there is real synergy in organisations like Ashcourt Rowan and Mattioli Woods entering into strategic partnerships to deliver better service and long term security for clients. We look forward to developing a strong relationship with Ashcourt Rowan and its advisers.
“With increasing complexity and continuing consolidation in the Sipp sector, we anticipate there will be further opportunities to expand Mattioli Woods’ operations, both organically and by acquisition.”
Ashcourt Rowan group chief executive Jonathan Polin says: “As Ashcourt Rowan continues to make significant strides across its business units, it is important as a management team we focus on our core. The administration of Sipp and SSAS schemes is not core to our business.
“We have found a strategic partner with the expertise, scale and systems to give the very best service to our clients. Mattioli Woods is an organisation that is aligned with our values and has the same view of the broader wealth management market as we do.”