Praemium Ltd
(ASX:PPS), has entered a deal to acquire Wensley Mackay Ltd, a privately-owned pension provider in the UK.
The investment platform company paid £600,000 in cash for this acquisition, which is subject to certain conditions – such as approval by the UK Financial Conduct Authority.
The company expects this transaction to be earnings accretive in the first year.
Praemium’s CEO, Michael Ohanessian, says that after pension reforms introduced in April 2015 has led to the retirement market opening up, with a major shift away from annuity investments, and towards other options like pension schemes.
Praemium reported a net profit of $779,000 at 30 June 2016.
