Auto-enrolment provider NOW: Pensions has been bought by risk management company Cardano Group.
The deal follows a difficult period for NOW: Pensions which saw the provider fined £70,000 by the Pensions Regulator (TPR) over errors that meant £18 million of contributions for 265,000 clients was not collected.
NOW: Pensions, which runs workplace pension plans for over 30,000 businesses and 1.7 million clients, said it had fixed these issues earlier this month.
The Cardano Group has completed a 100% acquisition of NOW: Pensions from Danish pension fund ATP. The deal is expected to complete later in 2019 following its authorisation from TPR as part of an ongoing master trust authorisation process.
NOW:Pensions chief executive Troy Clutterbuck said: 'In Cardano we have found a like-minded organisation, with a long-term commitment to the UK pensions market, that offers a great fit with our business.
'Workplace pensions in the UK are gathering greater momentum as the auto-enrolment regime matures.'
The firm anticipates transferring its investment management mandate from NOW:Pensions Investments (NPI) in Denmark to Cardano's UK-based fund management team, subject to the completion of due diligence by the Trustee.
The acquisition is Dutch pensions risk and investment management specialist Cardano's second in the UK, following that of covenant advisory specialist Lincoln Pensions in October 2016. The group will now employ over 350 people across the UK and the Netherlands.
Cardano co-chief executives Theo Kocken and Michaël De Lathauwer said: 'Bringing Cardano and NOW:Pensions together is transformational for our group. It is an investment in the future of UK pensions, enabling us to grow and diversify our client base.
'We believe our combination of pensions risk management and investment skills, together with NOW:Pensions’ enormous potential creates a ‘new force’ across the UK pensions landscape.'