Capita plans to merge its pension business Capita Hartshead with newly acquired Bluefin Corporate Consulting by the end of the year.
Capita announced its acquisition of Axa’s employee benefits consultancy this week. The deal is worth £50m and sees Axa retain the Bluefin trading name. It is expected to complete in the second quarter of the year.
Bluefin Corporate Consulting chief executive Nick Burns will be chief executive of the combined business.
He says: “I believe Capita Hartshead’s strength in pension admin, actuarial and consulting together with Bluefin’s award-winning employee benefits expertise and market-leading online technology will combine to deliver a wide range of client services.
“With the full backing of a FTSE 100 company, this new business will be able to provide genuinely innovative solutions to the rapidly evolving and increasingly dynamic employee benefits market.”
Bloomsbury Financial Planning partner Jason Butler says: “The corporate consulting side of Bluefin is the only part of the business that is worth a decent sum and Capita will probably make a success of it. The private client business has died a death.”
Bluefin’s other operations, including Bluefin Insurance Group and Bluefin Personal Consulting, which provides wealth management services, do not form part of the deal.
Capita saw off competition for the Bluefin arm from several private equity bidders.
Axa UK and Ireland group chief executive Paul Evans says: “We are pleased to have entered into an agreement with Capita which will ensure BCC and its customers benefit from the scale and market presence offered by becoming part of Capita’s employee benefits operation.”