UK - Insurance giant Jardine Lloyd Thompson has taken over troubled pension fund administration software provider, Profund Systems.
JLT said it had acquired the software specialist’s principal assets and that the firm would continue to trade “as it has, providing little disruption to its clients”.
The acquisition follows Profund’s decision to call in business recovery experts from accountant BDO Stoy Hayward.
Speculation was rife that its venture capitalist owner, Kleinwort Capital, had refused future funding because of an “unworkable” contract former Profund directors had signed with an undisclosed third party.
JLT spokeswoman Isabella Young said: “Profund will retain a separate identity and though it will be a subsidiary of the JLT Group, it will continue to trade as an autonomous business and will continue to provide services to all its customers, including end users and third-party administrators.”
It is believed the firm will change its name to Profund Solutions and that there could be staff cuts – particularly in the sales department.
Watson Wyatt head of administration consulting Allan Course said: “At least in the short-term this should not pose any problems or create any change for third-party administrators or their clients.
“I expect there to be a period of a couple of months while they familiarise themselves with the business and then we would expect them to form a strategy or modify the business.”
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