LONDON, UK: XPS Pensions Group plc, a leading UK pensions consultancy and administration firm, has announced that it has agreed to sell its National Pensions Trust (NPT) business to SEI, a global provider of investment management and technology solutions, for up to £42.5m.

The deal, which is subject to regulatory approval, will create a strategic partnership between XPS and SEI, under which XPS will continue to provide services to NPT and SEI, and SEI will gain access to the growing master trust market in the UK.

NPT is a multi-employer defined contribution pension scheme that offers flexible and cost-effective retirement solutions to employers and members. It has over 300 participating employers and over 40,000 members, with assets under management of over £1.5bn.

SEI is a leading provider of master trust services in the US, with over $100bn of assets under management and over 2 million members. It also operates the SEI Master Trust in the UK, which has over 20 participating employers and over 10,000 members.

The transaction will combine the strengths of both NPT and SEI Master Trust, creating a market leading proposition for employers and members in the UK. XPS will continue to provide high-quality pensions administration and consultancy services to both schemes, ensuring continuity of service and expertise. SEI will provide its investment management and technology solutions, enhancing the member experience and outcomes.

The cash consideration payable to XPS upon completion will be up to £42.5m, comprising of £35m initial consideration and deferred earn-out consideration of up to £7.5m based on business performance over two years. The net proceeds from the sale will be used to repay the group’s debt facilities.

Paul Cuff, co-CEO of XPS Pensions Group, said: “We are delighted to announce the agreement we have reached with SEI, which will create a market leading master trust for the benefit of our clients and their members. Under the partnership we have agreed, both firms will be bringing the best of what we each do to continue this exciting journey.”

Steve Charlton, managing director of defined contribution, EMEA and Asia, for SEI’s institutional business, said: “As we continue to expand the SEI Master Trust, we believe we are well-positioned to provide the premier service, investment management, and technology solutions for our members. Our expertise-combined with the addition of XPS’ high-quality pension administration services-will further enable us to deliver improved member outcomes. We look forward to welcoming the National Pensions Trust clients and team to SEI and their members into a partnership with the SEI Master Trust, so we can build upon both of our success.”

XPS Pensions Group has acquired Penfida Limited for £11.6 million