Consulting firm Mercer, a wholly-owned subsidiary of Marsh & McLennan Companies, has purchased New South Wales government’s funds administrator Pillar Administration for an undisclosed amount.
Pillar is a superannuation business with over $100bn in funds under administration across 1.1 million member accounts.
The move follows a legislation passed by the New South Wales government in May 2016 to privatise Pillar in order to secure the administrator’s long-term future.
Mercer EuroPac president Martine Ferland said that the company had presented a compelling bid that reaffirms Mercer’s global commitment to growing our superannuation outsourcing business in Australia.
“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,” Ferland added.
Mercer managing director and pacific market leader Ben Walsh said: “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.
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“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," Walsh added.