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STM Group Acquires UK Pensions Business
Friday 12 October 2018

12 October 2018 - UK-based cross border financial services provider STM Group plc (AIM: STM) has entered into an agreement to acquire UK pensions business Carey Administration Holdings Ltd., from the existing shareholder for a maximum consideration of GBP 0.4m (USD .53m), the company said.
The acquisition will be funded from existing financial resources and is subject to regulatory approval by the UK Financial Conduct Authority, as well as requiring notification to The Pensions Regulator in the UK. The approval process has commenced.
CAHL owns 70% of Carey Pensions UK LLP, offering a number of SIPP administration products to the UK market; and 80% of Carey Corporate Pensions UK Ltd., offering auto-enrolment workplace pension solutions to UK employers.
STM will enter the UK auto-enrolment market via Carey's AE business, offering quality service levels to intermediaries and advisers that wish to offer a more personalised service to their client companies.

Carey's AE business is one of the top 20 AE providers in UK by size and currently has over 65,000 members. It is expected to deliver revenue of approximately GBP 1.5m for the financial year ending 31 December 2018 and has been growing consistently year-on-year.

Following completion of the acquisition, the business is expected to break even during 2019, based purely on organic growth.

The UK AE market is undergoing considerable consolidation as part of the upcoming TPR authorisation process - and presents an opportunity for STM to accelerate its growth strategy by acquisition.

Carey's UK SIPP business has over 4,000 members and is expected to deliver revenue of approximately GBP 1.8m for the year ending 31 December 2018.

The assets under administration within the Carey UK SIPP business amounted to GBP 898m as at 31 December 2017.

Carey's UK SIPP business offers complementary products to those of STM's SIPP business, including offering Commercial Property SIPPs and SSAS'.

The Carey UK SIPP business, and its UK introducers, will benefit from STM's online application processes for ease and efficiency of processing.

STM will benefit from significant savings across the two SIPP businesses, estimated at GBP 0.5m per annum once fully integrated.

The Carey businesses will be rebranded within six months of completion.

STM is a multi jurisdictional financial services group which is listed on the AIM Market of the London Stock Exchange.

The group specialises in the delivery of a range of financial service products to professional intermediaries and the administration of assets for international clients in relation to retirement, estate and succession planning and wealth structuring.
STM has operations in the UK, Malta, Gibraltar, Jersey, and Spain.

The group is looking to expand through the development of additional products and services that its ever more sophisticated clients demand.
Date Published: 12/10/2018
Target: Carey Administration Holdings
Country: UK
Deal Size: .53m (USD)
Sector: Banking/Financial Services
Type: Corporate acquisition
Financing: Cash
Status: Agreed
Buyer: STM Group plc