Financial services provider STM Group has agreed to acquire the entire issued share capital and related pension trust schemes of Harbour Pensions, a Malta-based retirement scheme administrator.

Harbour includes four registered pension schemes and 1,600 members. The acquisition of Harbour will complement STM Malta’s 7,500 members in its qualifying overseas recognised pension scheme (Qrops) and deliver recurring annual revenues of more than £800,000 per year.

The deal, whose terms were not disclosed, is subject to approval of the Malta Financial Services Authority.

The transaction will be funded by STM’s existing cash reserves. STM expects the deal to deliver cost synergies and economies of scale of around £0.4m on an annualised basis.

STM CEO Alan Kentish said: “We are delighted to announce the acquisition of Harbour which will further build our book of business in Malta and allow for additional profit uplift from this jurisdiction. Harbour is a good solid business and the acquisition by STM is a win-win for all parties, giving a sensible exit route for the existing shareholders whilst at the same time ensuring that their existing QROPS members are well looked after going forward.”