Cross-border financial services provider STM Group has acquired two inter-related businesses in the UK and international pensions sectors.
It has bought 100% of the share capital of Berkeley Burke (Financial Services) and Berkeley Burke Employee Benefit Consultants.
Together, they provide administration and consultancy services to small self-administered pension schemes in the UK, as well as large and medium-sized UK and international businesses.
The two firms are independent of Berkeley Burke Sipp, which was sold to Hartley Pensions in September 2018.
Terms of the deal
The acquisition is not subject to regulatory approval and will be for a maximum consideration of £2.9m ($3.8m, €3.2m) on a debt free/cash free basis.
It is comprised of an initial consideration of £1.4m plus a further £1.5m, payable based on revenue hurdles that apply to existing business and opportunities in the pipeline.
Up to £1m of the contingent sum is payable at the first anniversary, with the remainder at the second anniversary date of the acquisition.
It will be funded by STM’s existing cash resources.
The company has also secured credit committee approval from the Royal Bank of Scotland for a £5.5m credit facility to be used purely for acquisitions.
The M&A deals are the latest piece of good news for STM, which announced last week that it has reached an agreement with the Gibraltar regulator.
Alan Kentish, chief executive of STM Group, commented: “We are really pleased to get this acquisition under our belt; it has been a long time coming but we needed to find the right acquisition for us.
“The Sass and GPP businesses fit nicely within our existing operations and complement some of our imminent expansion plans in the international pension space.
“I am delighted to welcome Grahame Berkeley, who will act as a consultant to the business for the foreseeable future, and his dedicated staff to the STM family.
“In addition the finalisation of the new bank facility will allow up to further continue to pursue our acquisition strategy for other opportunities,” Kentish added.
International business push
Grahame Berkeley, chairman and majority owner of the Berkeley Business businesses, added: “I am delighted that the businesses I have built up over the last 47 years are becoming part of the STM Group.
“I have watched STM’s expansion over the last few years and their relatively recent entry into the UK market.
“I have no doubt that I, and my loyal and very able staff, will be able to add significant value to STM.
“I am particularly excited by the opportunity to help STM move their international business forward.”