UK/US - Fiduciary manger P-Solve is to acquire insurance market consultant and software specialist Meridian as part of its diversification strategy.
Meridian provides investment consulting, performance measurement and accounting software in the UK insurance market.
P-Solve - the investment consulting and fiduciary management arm of Punter Southall - said the deal would help it establish a significant position as an investment adviser to the UK insurance market and build its expertise in this area in the US.
The firms said they believed the pension fund and insurance markets faced similar asset allocation and risk management issues.
P-Solve has an institutional client base representing £20bn under advice and implementation mandates in excess of £7bn. Meridian's client base has assets of more than £15bn.
P-Solve director Jack Berry said the deal would allow the company to "capitalise on Meridian's leading position as a service provider to the UK insurance market".
Meridian managing director David Osborne said his company could benefit from P-Solve's research and experience in investing for pension fund clients.
"In the next few years, as the demands for investment return grow, the range of possible investment strategies becomes more complex and the regulatory and reporting requirements multiply for insurers, our clients can benefit from the research and strategies that have been developed for pension funds," he said.
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