STM acquires pensions operator Carey Administration

STM Group has agreed to acquire Carey Administration from its existing owner for up to £400,000.

The AIM-listed cross-border financial services provider revealed on Tuesday that it will absorb CAHL, which owns 70% of Carey Pensions and Carey Corporate Pensions, using existing financial resources. Regulatory approval will be required from the UK Financial Conduct Authority.

As a result of the acquisition, STM will enter the UK auto-enrolment market, offering a highly "personalised" level of services to intermediaries and advisers.

STM expects Carey's UK business, which has £898m of assets under administration in client SIPPs, to deliver revenues of approximately £1.8m for the year ending 31 December.

Alan Kentish, STM's chief executive officer, said: "Carey pensions has been a self-starter in the UK pensions market and has achieved a lot under Christine Hallett's leadership during a relatively short time frame."

"The management team has ideas and opportunities in abundance and I believe STM's resources, financially and otherwise, will allow many of these to come to fruition."

As of 0855 BST, STM shares had dipped 3.30% to 58.99p.