Deloitte UK has agreed to sell its pensions business to private equity-backed KPMG spin-off Isio.
The planned sale of the 200-strong unit is the latest in a string of divestments by Big Four firms as they look to boost partner profits and raise capital for investments.
Isio was spun out of KPMG in 2020 in a management buyout backed by private equity firm Exponent.
KPMG received £128m for the business, booking profit of £115m, according to its accounts for the year to 30 September 2020.
The terms of Deloitte’s sale of its pensions business to Isio were not disclosed.
The acquisition would take Isio to annual revenue of around £140m and 1,000 employees across nine existing UK locations and a new base in Belfast, the firm said.
“Deloitte UK’s pensions business has achieved great success to date and bringing the two businesses together will create exciting opportunities for our people, our clients and their pension scheme members,” Isio’s chief executive Andrew Coles said in an 11 January statement.
“We wish the team every success,” said Lisa Stott, managing partner for tax and legal at Deloitte UK.
Deloitte sold its restructuring business to public relations and advisory company Teneo in 2021 in a deal backed by private equity firm CVC.
KPMG also sold its restructuring division in 2021 in a buyout backed by private equity firm HIG to launch Interpath.
Rival EY is planning to take the more radical step of splitting its business between consulting and audit with the aim of floating the consulting business.
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