Isio to acquire Deloitte UK's pensions business

Isio has announced it has reached an agreement for the acquisition of Deloitte Total Reward and Benefits (DTRB), Deloitte UK's pensions advisory business.

The transaction, which is subject to approval from the Financial Conduct Authority, will see the DTRB's workforce of 200 individuals join forces with the existing Isio team to create one of the biggest pensions advisory businesses in the country, consisting of 1000 employees in nine locations across the UK.

The combined business will see revenues increase by around £25m to approximately £140m, making it one of the top 5 biggest pension consultancies by revenue.

Isio said the deal would have a number of benefits - adding scale to its operations, allowing it to invest further in technology and central functions, as well as bringing a substantial Belfast team and an employer covenant offering to the business.

The deal with DTRB follows Isio's acquisition of Premier Pensions Management in January 2022, which the firm says enabled it to launch new business propositions such as wealth management and employee benefits advice.

Isio Group chief executive Andrew Coles (pictured) said: "Since our independence in 2020, we have been ambitious in our growth plans and are proud of how quickly we have established ourselves in the market, developing our people and our services at pace.

"This acquisition builds on the momentum we have as we build scale and challenge the status quo by developing the best pensions, benefits and wealth advisory offering in the market. Deloitte UK's pensions business has achieved great success to date and bringing the two businesses together will create exciting opportunities for our people, our clients and their pension scheme members.

"I look forward to welcoming the DTRB team into an environment which provides so much opportunity for career development and progression."

Coles told PP that Isio had now roughly doubled in size since it became independent from KPMG in March 2020 - adding the business would continue to pursue both an inorganic as well as an organic strategy going forward but adding that it remained "very selective" with regards to acquisitions.

DTRB partner and head Mark McClintock commented: "Bringing together the pedigree and heritage of Deloitte's UK pensions business and Isio is a hugely exciting proposition for our people and the marketplace.

Deloitte UK Tax & Legal managing partner Lisa Stott added: "DTRB is one of the most well-respected pensions advisory businesses in the UK and our priority has always been to enable the team to diversify their business and expand into new areas.

"We are pleased that the deal will support the continued success of the DTRB business in the long term, providing the maximum opportunity for its growth and the development of its people. We wish the team every success."

"The combined business will have the skills, propositions and services to be the advisor of choice to many UK pension schemes and their sponsors. We are looking forward to joining Isio and all the opportunities it will provide for the team."

The acquisition is expected to be finalised by Spring 2023.

This story first appeared in International Investment's sister brand Professional Pensions.