SEI Investments has purchased National Pensions Trust (NPT) from its parent company XPS Pensions Group for £42.5m in a deal that will see SEI and XPS enter a long-term strategic partnership.

The total cash deal of £42.5m will comprise a £35m initial payment at closing and a deferred payment of up to £7.5m based on business performance over two years, it was announced.

The transaction is expected to close before year-end, subject to applicable regulatory approval and other customary closing conditions.

Founded in 2009, the NPT has more than 60,000 members and £1.4bn in assets.

The total combined assets of NPT and SEI Master Trust will be approximately £3.4bn, according to SEI.

As part of the transaction, SEI will welcome nine employees to its institutional business, and one of the NPT trustees will join SEI Trustees Limited.

The deal will also create a long-term strategic partnership between XPS and SEI, in which XPS will continue to support NPT with pensions administration and consultancy to help ensure continuity of service to members and clients, as well as provide wider support to the SEI master trust in the future.

Paul Cuff, co-chief executive officer of XPS Pensions Group, said that the XPS business “continues to perform strongly in the new financial year, with continued high levels of demand for our services and confidence in our financial performance”.

Steve Charlton, managing director of defined contribution, EMEA and Asia, for SEI’s institutional business, added: “As we continue to expand the SEI Master Trust, we are well-positioned to provide the premier service, investment management, and technology solutions for our members. Our expertise – combined with the addition of XPS’s high-quality pension administration services – will further enable us to deliver improved member outcomes.”

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