Mattioli Woods, a pensions consultancy firm, has acquired the trade and assets of the pension administration and employee benefits businesses of Cooper Parry Wealth Strategies, for a total consideration of up to GBP1.175m, subject to certain revenue and client retention targets being met during the two years following completion.
CP Pensions provides pensions consultancy and administration services to a portfolio of 239 self-invested personal pension (SIPP) clients and 51 small self-administered pension schemes (SSAS), with total funds under trusteeship of over GBP110m. CP Pensions also provides employee benefits services to 30 corporate clients.
CP Pensions’ team of six administration staff will be retained by Mattioli Woods and relocate to its Leicester office following the acquisition.
On 30 April 2010, the company also entered into separate agreements to acquire the entire issued share capital of Cooper Parry SIPP Trustees and Cooper Parry SSAS Trustees (the Trustee Companies) for a nominal consideration.
The total consideration consists of an initial payment of GBP0.575m funded from the company’s existing cash resources and deferred consideration of up to GBP0.6m, of which GBP0.3m will be paid in the two years following completion, with the remaining payment of up to GBP0.3m being determined with reference to an earn-out mechanism based on revenues generated during the two years following completion.
CP Pensions generated revenues of GBP0.43m in the year ended April 30, 2010. The acquisition is expected to be earnings enhancing in the first full year of ownership.
Bob Woods, executive chairman of Mattioli Woods, said: In addition to enhancing the administration of clients’ schemes using our bespoke pension administration platform, the acquisition gives us the opportunity to develop the client offering through our consultancy initiatives and the alternative investment vehicles we have developed in response to existing clients’ demands, such as the syndicated property initiative and capital-guaranteed bond programme.
The acquisition of CP Pensions’ employee benefits business adds further scale to Mattioli Woods’ existing employee benefits and group scheme operation. The transaction also facilitates the development of a closer, ongoing relationship with Cooper Parry.