LCP, the independent pensions consultancy based in the UK and Ireland, is to become one of the largest pension consultancies in Germany after agreeing to acquire Aon's pensions consulting, pension insurance broking, pensions administration and investment consulting business with five offices across the country.

The deal is contingent on the completion of the pending Aon and Willis Towers Watson merger, as well as other customary closing conditions, it said in a statement on 17 May. 

Aon's business in Germany, which employs 350 people, will be rebranded as LCP on completion.

Aaron Punwani, LCP's chief executive, said: "A key part of LCP's strategy is diversifying the business into different markets with long-term growth potential. The German pensions consulting market is the third largest in the world, after the US and the UK, which makes it a natural place for LCP to achieve a leading position, mirroring what we have achieved in the UK in recent years.

"The business we are acquiring is well-respected and has a strong blue-chip client base, complementing that of LCP in the UK and Ireland. The German pensions consulting market is extremely well-placed for innovation and growth as businesses review their pensions strategy with a greater focus on funded and insured solutions, and it is ripe for a technological transformation of the type that LCP has delivered for its clients in the UK and Ireland in recent years.

"We see a meeting of minds with the knowledgeable and dynamic people who lead the business in Germany. We are truly excited about welcoming Fred Marchlewski and his fantastic team as part of LCP and achieving great things together for the benefit of our people and our clients."

This acquisition follows on from a period of growth at LCP, which posted a record income of £126.5m during the financial year 2019/20, an increase of 10.1% driven by success across a wide range of sectors including pensions, investments, insurance, energy and health.

Greg Case, Aon's chief executive said: "This agreement demonstrates further momentum on the path to close our proposed combination with Willis Towers Watson. We recognize the significant contributions these colleagues have made on behalf of our clients during their time with Aon. LCP shares with us a culture of innovation and excellence and we know these colleagues have a positive future at LCP."