Specialist pension consulting and administration firm XPS Group has agreed to acquire the trade and assets of actuarial consultancy Austin Professional Resourcing (APR).

Under the terms of the agreement, XPS will pay £3.3m in cash on completion and a further £3.0m by 31 March 2027. Additional contingent payments of up to £10m could follow over the next two years if performance targets are met. The deal is being funded through existing cash resources and debt facilities.

XPS said the acquisition, which is expected to complete around 31 July, strengthens its position across both life and general insurance markets and supports its diversification strategy into a sector it estimates now gives the group a total addressable market of more than £6bn. The acquisition also expands the group’s presence in the UK general insurance consulting market, which it estimates is worth around £1.5bn annually.

Founded in 2006, APR has worked with more than 45 insurers and financial services clients over the past three years, including most of the UK’s top 10 insurers. The business generated revenue of £10.7m in the year to 31 March and employs more than 70 client-facing staff.

"We have admired APR for some time for its culture, talent and insurance relationships," Paul Cuff, co-CEO of XPS Group. "With this transaction, XPS will have doubled our total addressable market to £6bn+ in the space of less than two years, through strategic acquisitions and senior recruitment. We are very excited about what the future holds as we become a broader financial services firm providing outstanding client service to pension schemes and insurers alike."

Roger Austin, founding partner of APR, added: "We are excited about the opportunity to jointly deliver a much more comprehensive service to the insurance sector."

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