Financial services provider STM Group will expand into the auto-enrolment (AE) market after completing a deal to acquire Carey Pensions.
The completion of the deal - announced today (13 February) - follows a previous announcement last October that STM would acquire the provider's AE and self-invested personal pension (SIPP) businesses for £400,000.
STM will take an 80% stake in Carey Corporate Pensions UK, which provides AE workplace pension products, and a 70% stake in Carey Pensions UK, which offers SIPP products.
The deal includes The Carey Workplace Pension Trust, and two other master trusts Carey Corporate Pensions UK administers: Islamic Pension Trust, and Lewis Pension Trust.
It comes as master trusts are being required to apply for authorisation from The Pensions Regulator (TPR). Such schemes have until the end of March to apply or else wind up and transfer into an authorised scheme.
STM chief executive Alan Kentish said he was "delighted" the businesses will be joining his firm: "The two UK focused pensions businesses give us some really exciting options for our growth strategy."
He added that the Carey businesses have "solid product offerings" and a "loyal and professional intermediary base".
Current Carey chief executive Christine Hallett will retain a minority shareholding of both Carey Pensions UK and Carey Corporate Pensions UK, and will continue as managing director.
She said: "We are delighted that the acquisition has now finally been completed. STM's vision for the UK market, both in terms of SIPPs and workplace solutions, as well as their support and resources, makes STM the perfect partner for us to be able to further grow successful and profitable businesses."
It was previously announced that the Carey businesses will be rebranded within six months of completion.
According to latest figures from TPR, just eight master trusts have so far applied for authorisation with just over six weeks left until the deadline.
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