Mercer to buy Cardano, NOW Pensions in major acquisition
Mercer has announced that it will purchase consultancy group Cardano including its £4bn master trust NOW Pensions.
The terms of the deal have not been disclosed, but the transaction is expected to close by the end of this year, subject to regulatory approval.
The acquisition would add $66bn (£52bn) in assets under management to Mercer’s balance sheet. These assets represent Cardano’s fiduciary management businesses in the UK and the Netherlands.
NOW Pensions, which Cardano acquired in 2019, has more than two million members and serves approximately 27,000 employers. It is the third largest master trust in the UK by members, according to Mercer’s press release.
Mercer already has its own defined contribution (DC) master trust, which manages more than £15bn in assets.
A spokesperson for Mercer told Pensions Expert that the company intended to keep NOW Pensions as a separate brand.
Michael Dempsey, president of Mercer Wealth, said: “We are excited about the opportunity to welcome Cardano to our Wealth business, which brings with it a high-quality team and complementary range of specialist investment capabilities.
“The acquisition and alignment of our expertise and capabilities represents a unique and timely combination to support pension clients and other institutional investors and their evolving needs.”
Benoit Hudon, Mercer’s UK president and CEO, added that the combination would allow Mercer to expand its reach to other types of asset owners such as endowments, foundations, family offices and insurers.
“Mercer is the ideal long-term home for our business and clients,” said
Michaël De Lathauwer, Cardano Group’s CEO, said his company shared “an aligned culture with Mercer, focused on delivering excellent outcomes for clients, and together, we are committed to being the best solutions provider for UK and Dutch pension schemes”.
As part of the agreement, approximately 550 Cardano staff across its three offices in London, Nottingham and Rotterdam are expected to join Mercer upon completion of the transaction.
The Cardano deal is Mercer’s first major acquisition in the UK pensions space since it bought Jardine Lloyd Thompson in 2018.