Business
NPT Strategic Partnership with SEI
NPT Strategic Partnership with SEI.
About this update from Xps Pensions Group Plc
[{"type":"text","content":"\n\nThis announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended (\"MAR\"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.\n14 July 2023\nXPS Pensions Group plc\n(\"XPS\" or the \"Group\")\n \nXPS Announces National Pensions Trust Strategic Partnership with SEI\nXPS Pensions Group plc is pleased to announce that it has entered into an option agreement to sell XPS Pensions (Nexus) Limited, principal employer and scheme funder of the National Pensions Trust (\"NPT\"), to SEI® (the \"Transaction\") with the intention to create a market leading defined contribution proposition for employers and pension scheme members. The deal creates a strategic partnership between XPS and SEI, under which XPS will provide wide ranging services to continue to support NPT and SEI. The transaction is subject to regulatory approval.\nThe total cash consideration payable to XPS upon completion following regulatory approval is up to £42.5 million, comprising of £35.0 million initial consideration and deferred earn-out consideration of up to £7.5 million based on business performance over two years. \nThe Transaction positions the SEI Master Trust to continue delivering best-of-breed service at increased scale in partnership with NPT. XPS will continue to provide high-quality pensions administration and consultancy services to NPT and SEI which will ensure continuity of service to the members and clients. SEI will benefit from enhanced opportunities in the growing master trust space, and XPS will benefit as a key service provider to SEI.\nThe consideration will be satisfied in cash. Net proceeds from the Transaction will be used to repay the Group's debt facilities.\nGross assets attributable to NPT were £2.5 million (including the regulatory capital cash account) and the adjusted EBITDA contribution from NPT to the XPS Group in the year ended 31 March 2023 was £0.9 million.\nThe Transaction constitutes a Class 2 transaction for the purposes of the FCA's Listing Rules and is expected to complete upon receipt of regulatory approval.\n \nCommenting on the Transaction:\n \nPaul C...