Mercer acquires Australian superannuation provider Pillar Administration

16 December 2016 3 min. read
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In a deal that further expands Mercer’s presence in the Australia’s superannuation sector, Mercer has acquired Pillar Administration, an Australia based super administration provider, for a fee of AUD$35 million.

The Pillar Administration is one of Australia’s largest superannuation administration providers – founded in 1912 – with more than $100 billion in funds under management across 1.1 million accounts.

Earlier this year the New South Wales government passed legislation that paved the way for the privatisation of Pillar Administration.

The NSW government wants to secure the future of Pillar in an increasingly complex and saturated market with the move. A number of players have shown a high level of interest in the Pillar Administration, including Mercer and Link Administration Holdings. The global HR consultancy Mercer, itself a subsidiary of Marsh & McLennan Companies, coming out victorious in the bidding process.

Mercer plans to expands its capability to deliver administration services to the public sector with the acquisition including within corporate superannuation fund industry. According to the Mercer, the move will enable the consulting firm to further advance the professional development of Pillar Administration’s people through its global best practice, as well as offer its new customers a range of financial wellness tools.

Mercer acquires Australian superannuation provider Pillar Administration

Mercer’s EuroPac President, Martine Ferland commented on the deal, “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.”

Mercer’s Managing Director & Pacific Market Leader, Ben Walsh, says that the acquisition is in line with the firm’s wider strategy. He 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.”

“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,” he continued.

The deal is reportedly worth $35 million, well below target of $100 million that was set by the NSW government. Mercer also acquired Sirota Consulting last week, an employee engagement expert with offices in four countries.