SEI Investments' (SEIC) Arm to Acquire National Pensions Trust
SEI Investments (Europe) Limited (“SIEL”), a subsidiary of SEI Investments SEIC, has announced a deal to acquire the outstanding equity of XPS Pensions (Nexus) Limited, the principal employer and scheme funder of the National Pensions Trust (“NPT”), from XPS Pensions Group PLC (“XPS”). This strategic acquisition is aimed at bolstering SEIC's financials and enhancing its competitive position in the defined contribution market.
The total cash consideration for the acquisition is up to £42.5 million, with an initial payment of £35 million at closing and deferred consideration of up to £7.5 million over two years, subject to post-closing performance measurements. The transaction, expected to be completed before the year-end, is subject to regulatory approval and customary closing conditions.
SEIC has been focusing on three key strategic areas of talent, culture and growth. With the buyout of the Atlas Master Trust in 2021, the company laid the foundation for its strategy to acquire assets and increase its market presence in this segment. The addition of NPT further strengthens the company’s position and sets the stage for future growth.
Founded in 2009, the NPT is a leading master trust in the U.K. with more than 60,000 members and £1.4 billion in assets. The combination of NPT and the SEI Master Trust will result in total combined assets of approximately £3.4 billion. This acquisition will also bring nine employees from NPT to SIEL's Institutional business, and a trustee from NPT will join SEI Trustees Limited.
The deal establishes a long-term partnership between XPS and SIEL, ensuring continuity of service to NPT members and clients. XPS will continue to provide pensions administration and consultancy services to support NPT and offer broader support to the SEI Master Trust.
By expanding the SEI Master Trust and leveraging XPS' pension administration services, SEIC can provide enhanced service, investment management and technology solutions to its members. With combined expertise and the addition of XPS' services, the company aims to deliver improved member outcomes and solidify its position as a premier provider in the market.
The deal demonstrates SEI Investments’ commitment to growth and its strategic focus on the defined contribution market. With the long-term strategic partnership between XPS and SIEL, both organizations are poised to leverage their strengths and continue to provide exceptional value to their clients and members.
Shares of SEIC have rallied 7.1% over the past three months, outperforming the industry’s growth of 5.9%.
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Currently, SEI Investments carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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