Pensions software provider the Equiniti Group has sold its SIPP arm, Xafinity Consulting to CBPE Capital for an undisclosed amount.
The deal is expected to complete in Q1, 2013 and is still subject to certain conditions and regulatory approvals.
Equiniti says the sale is consistent with its focus on larger scale complex administration and financial processing contracts for pension, shareholder and commercial solutions.
Xafinity Consulting works across pensions, healthcare and employee benefit consulting and administration and will continue to provide Sipp consulting and independent trusteeship of schemes.
The Equiniti Group was created in 2010 by bringing together Xafinity pension administration, software and consulting business with the outsourcing and share registration provider Equiniti.
It currently administers the pension benefits of nearly three million scheme members, pays over 30 per cent of UK pensioners and supports more than 10 million pension scheme members with software.
Equiniti Group chief executive Wayne Story says: “We believe that separating the Xafinity Consulting business now is the right course of action for both Xafinity Consulting and the wider Equiniti Group, enabling each to a have a clear focus.”
Xafinity Consulting managing director Robert Birmingham says: “Xafinity Consulting will continue to concentrate on its existing markets within which we have significant ambitions to develop and expand our range of services and products.”
Syndaxi Chartered Financial Planners managing director Rob Reid says: “There will be a few more SIPP businesses up for sale and there will be more consolidation in the sector. With more regulation it will be curtains for many small businesses as the fixed costs become too high.”