Capita has bought Winterthur Life's Sipp administrator Personal Pensions Management after negotiations which were exclusively revealed by Money Marketing in March.
Capita has been appointed as a strategic partner by Winterthur Life to provide third-party Sipp admin services and, as part of this contract, will also be buying the entire share capital of Winterthur's subsidiary PPML.
Once regulatory approval has been granted, all 400 PPML employees are expected to transfer to Capita. PPML will be renamed Capita PPML and a Capita team will work alongside the existing management team to ensure smooth transition.
PPML is the second-biggest Sipp administrator and had net assets of £2.9m at the end of last year.
Capita says the agreement makes it the biggest open-book administrator in the UK life and pension outsourcing market after recent contracts with Children's Mutual, Lincoln Financial Group, Prudential Inter-national and St James's Place International.
Winterthur Life UK chief executive officer Mike Kellard says: “This is a very positive step for all parties. Winterthur Life UK will now be able to inject real drive into its stated strategy of developing clear, transparent and innovative pension and investment products backed with an open charging structure that reflects the needs of customers in the 21st Century.”
Capita Group executive chairman Rod Aldridge says: “The combination of our knowledge and expertise of customer service and administration processing with the depth of skill and experience of the PPML employees, positions us at the forefront of delivering service excellence in third-party Sipp administration. We will continue to develop and grow this business introducing the latest technology and processes to further improve quality and provide a very efficient administration system.”