Pension SuperFund Capital has officially announced its acquisition of STM Group, the parent company of Options Pensions, in a deal valued at £35.6 million. Through the acquisition arm Bidco, the deal’s worth might increase to £39.8 million if the deferred consideration units (DCU) achieve their full value.

Stakeholders in the scheme can expect a cash entitlement of 60 pence per share, with the potential for this to rise to 67 pence depending on DCU’s full value realization.

Coming on the heels of the Mansion House reforms unveiled by the UK’s Chancellor of the Exchequer, Jeremy Hunt, this acquisition is aligned with the broader vision to foster consolidation and reduce costs in the pension sector. This also provides opportunities for diversified investments, including into infrastructure areas.

According to updates from the London Stock Exchange (LSE), Pension SuperFund Capital is keen on leading these changes with the goal of better outcomes for pensioners and easing the pension liabilities of employers. This strategic direction is pursued even as Edi Truell, founder of Disruptive Capital, decided to phase out Pension SuperFund due to regulatory challenges.

Further insights from LSE highlighted the complementarity between STM Group and Pension SuperFund. However, STM is believed to operate at a scale that doesn’t allow expansive portfolio access, especially in high-growth assets. By optimizing STM’s existing legacy tech infrastructure, there are opportunities to enhance cost efficiencies and improve investor results.

Both Bidco and Pension SuperFund Capital believe in the potential of a combined venture. By merging STM’s client and asset base with Pension SuperFund Capital’s technological and capital capabilities, there is optimism about refining the pension landscape and delivering better results for investors.

Backing the acquisition, Edi Truell emphasized its alignment with their overarching objective of creating a comprehensive global solution that enhances pension outcomes.

Nigel Birrell, STM’s Chair, shared this vision, highlighting the acquisition price’s premium over STM’s share price before the merger talks. Recognizing STM’s potential for growth, Birrell also emphasized the uncertainties of progressing independently. Integrating with a larger entity like Pension SuperFund Capital presents a clearer, more streamlined path forward.