The executive arm of the UK’s largest private sector pension scheme, BT Pension Scheme Management (BTPSM), has acquired a majority stake in pensions software firm, Procentia.
The acquisition was for an undisclosed figure and will see BTPSM implement Procentia’s IntelliPen system for the scheme’s member administration services, which it brought in-house last year.
Procentia’s founders Steven Donkin, Trevor Scurr, Ian Dowler, Paul Jones and Daniel Osicka will remain with the business.
Commenting on the deal, Procentia CEO, Steven Donkin, said: “Procentia has achieved a huge amount over the past 17 years, building a loyal client base with a strong reputation for technical excellence, innovation and client care.
“But, there’s only so far five pension software geeks can go on their own, and to fulfil our potential we need support. In BTPSM we’ve found the perfect partner that is committed for the long-term and understands our sector inside out.”
Procentia was established in 2002 and has more than 30 clients, including FTSE 100 companies, which it serves from offices in Bristol (UK) and Chicago (USA).
Currently, more than 2 million pension scheme members are administered on Procentia’s systems and it supplies software to third party administrators, systems integrators, technology companies and other product providers.
The BT Pension Scheme has around 300,000 members of which approximately 200,000 are pensioners or beneficiaries.
It has around £50bn of assets and pays out over £2.5bn in pension and other benefits every year.
BTPSM CEO, Morten Nilsson, added: “In Procentia, not only have we found a market-leading system that will future proof our member services, but a great long-term investment in its own right.
“We look forward to supporting Procentia in its next phase of growth.”