Mercer to acquire Cardano to expand wealth management services

Mercer, a business of Marsh McLennan (NYSE: MMC) and a global leader in transforming the world of work, has announced its agreement to acquire Cardano, a specialist in long-term savings based in the UK and the Netherlands. This acquisition, set to finalize by the end of 2024 pending regulatory approvals, will significantly enhance Mercer’s asset management capabilities, given Cardano’s extensive experience and a robust portfolio that includes approximately $66 billion in assets under management.

Strategic Acquisition to Broaden Expertise and Market Reach

Cardano, established in 2000, is renowned for its specialized fiduciary management, investment advisory services, and liability-driven investing solutions. The company serves both defined benefit (DB) and defined contribution (DC) pension schemes, primarily in the UK and the Netherlands—Europe’s two largest pensions markets. With its unique approach combining direct investment capabilities and external manager selection, Cardano has distinguished itself in the pension management sector.

Through its NOW: Pensions, Cardano operates the third-largest UK master trust platform, catering to over two million savers across 27,000 employers. This platform has gained prominence in the auto-enrolment market, which is experiencing structural growth.

Executives’ Perspective on the Deal

Michael Dempsey, Mercer’s Wealth President, expressed enthusiasm about the acquisition: “We are excited about the opportunity to welcome Cardano to our Wealth business, which brings with it a high-quality team and complementary range of specialist investment capabilities.”

Benoit Hudon, Mercer’s UK President and CEO, highlighted the strategic benefits of the merger: “Our combined talent and capabilities will position Mercer as the pension provider of choice in the UK and the Netherlands. This will allow us to continue to expand globally beyond pensions to serve other large asset owners, including endowments and foundations, family offices, and insurers.”

Michaël De Lathauwer, CEO of Cardano Group, also commented on the integration: “Mercer is the ideal long-term home for our business and clients. We share an aligned culture with Mercer, focused on delivering excellent outcomes for clients, and together, we are committed to being the best solutions provider for UK and Dutch pension schemes.”

Implications and Future Prospects

The acquisition promises to create a unique and timely combination of resources that will support pension clients and other institutional investors as they navigate the evolving needs of the market. Approximately 550 Cardano colleagues from their offices in London, Nottingham, and Rotterdam will join Mercer upon the transaction’s completion, further enriching Mercer’s service offerings with a broader pool of expertise.

This strategic move not only enhances Mercer’s position in the wealth management industry but also ensures that both organizations can leverage their combined strengths to deliver greater value and brighter futures for millions of savers.