Self-invested personal pension (SIPP) provider Mattioli Woods has acquired Midlands-based MC Trustees for £2.2m.
The firm provides pension administration and trustee services to 1,500 SIPP and small self-administered scheme (SSAS) clients and has £400m of assets under administration.
In 2015 it generated pre-tax profits of £0.4m on revenues of £1.6m. Its net assets were £0.3m.
Mattioli paid £1.2m upfront for the business, with a further £1m deferred for two years and subject to financial performance.
Mattioli said it plans to keep MC Trustees’ management team following the acquisition, and expects overall earnings to be enhanced by the deal.
Chief executive Ian Mattioli said: “This acquisition is another important step forward for Mattioli Woods, as we continue to expand our operations. MC Trustees is a great fit culturally and strategically, serving a similar client base to our existing business while complementing our current operations in the East Midlands.
“The MC Trustees team has a proven ability to win high-quality new business and the transaction gives us an exciting new distribution channel for Mattioli Woods’ services. I believe this will strengthen our position in a market that is continuing to consolidate.”
Mattioli also agreed to acquire MC’s qualifying recognised overseas pension scheme (QROPS) operator, MC Malta, for £0.6m subject to contract and regulatory clearance.
MC Malta provides pension arrangements for expatriates from the UK or people who have earned a pension in the UK and now live abroad.
MC Trustees managing director Martin Cadman said: “We are excited to become part of the Mattioli Woods group and believe this transaction benefits our clients, employees and partners.”
Strong pipeline
Mattioli said in its annual results on 8 September it has a “strong pipeline” of further acquisition opportunities.
It already took on Stadia’s backbook of SIPPs in February, adding £100m of assets.
Last October it bought the SSAS administration business of Lindley Group for almost £200,000.
Mattioli posted a pre-tax profit of £6.3m for the year ending May, up 19% on last year. Its revenue was up 24.3% to £43m while new client assets were up 22.2% to £6.61bn after the firm won 1,100 new clients in the year.
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