STM completes £5.4m London & Colonial purchase
STM Group, the cross border financial services provider has announced the completion of the acquisition London & Colonial Holdings.
In a statement released earlier today STM Group said that it had been able to complete the acquisition, as announced on 13 September, ahead of the expected timeline. London & Colonial will continue to operate under its own brand name but will be fully integrated into the enlarged STM Group.
Completion of the £5.4m deal to acquire the UK SIPP provider was conditional on the delivery of 100% of the voting share capital and regulatory approval from the Gibraltar Financial Services Commission (GFSC), with approval already having been received from the UK Financial Conduct Authority (FCA). All conditions have now been satisfied, the statement read.
STM said that the deal “achieves its strategic objective” of entering the UK SIPP market which the board believes will be scalable; thus being able to accommodate returning UK expats with a SIPP offering as well as organically growing the business in UK
London & Colonial’s UK SIPP business already has approximately 2,000 members and generates a turnover of approximately £1m and its Gibraltar life assurance business has approximately 1,200 policyholders and generates a net turnover of approximately £2m
London & Colonial’s Gibraltar QROPS business has approximately 300 QROPS under management, and is expected to be “easily absorbed” into the STM’s own QROPS administration system
Alan Kentish, chief executive of STM, said: “We are very pleased to have completed the acquisition of London & Colonial ahead of the expected timeline. This illustrates the enthusiasm from both sides to create an enlarged [STM] Group. London & Colonial is a very well respected business and one which can continue to prosper with the additional support from STM.
“We believe this is a clear case of the aggregate of the two businesses being worth significantly more than the sum of the parts, and I look forward to updating the market on our progress in the near future.”