Mercer has bought Pillar Administration, an Australia based superannuation administration provider, for a reported fee of AUD$35 million. The deal further expands Mercer’s presence in the country's pension sector.
Founded in 1912, the Pillar Administration is one of Australia’s largest superannuation administration providers – with funds under management of more than $100 billion across 1.1 million accounts.
Earlier this year the government of New South Wales passed legislation that paved the way for the privatisation of Pillar Administration – with the move, the government wants to secure the future of Pillar in an increasingly complex market. A number of players showed interesting in buying Pillar Administration, including Mercer and Link Administration Holdings, with the prior firm, a global HR consultancy, coming out on top of the bidding process.
Through the addition, Mercer expands its capability to deliver administration and related services to the public sector, industry and corporate superannuation funds. The move will, according to the consulting firm, also enable it to further advance the professional development of Pillar Administration’s people through its global best practice, as well as offer its new customers a range of financial wellness tools.
Martine Ferland, Mercer’s EuroPac President, says about the deal, “It’s an area we are investing in because we are committed to continuing to deliver excellent service and innovation, at scale, to our clients right across the superannuation service chain. We also want to provide our people with new opportunities and a great place to work.”
Ben Walsh, Mercer’s Managing Director & Pacific Market Leader, says that the acquisition is on point for the firm’s wider strategy. He reflects, “We will add further value to our clients and to members through the investments we are making in our business and through strategic partnerships, alliances and acquisitions such as this one. Specifically, we know many super funds are seeking a proactive and sustainable business partner who can provide superior administration and related services, reduce costs and help funds get closer to members. For this reason, we have invested heavily in our people capability, process innovation and technologies to ensure we are ready for these opportunities. This deal provides Mercer with the capability and scale to enhance our clients’ relationships with their members."
The deal is reportedly reportedly worth AUD$35 million, well below NSW's target of AUD $100 million. Last week Mercer also acquired Sirota Consulting, an employee engagement expert with offices in four countries.