NatWest Group is buying an 85% stake in U.K. workplace savings and retirement technology provider Cushon for £144 million ($174 million), the U.K. bank said in a Monday news release.
The deal, which is expected to close by the end of the year, is subject to regulatory approval. Cushon is a portfolio company purchased by Augmentum Fintech in June 2021 with an initial £5 million and a further £5.8 million, Augmentum said in a separate release. It expects to make £22.8 million from the deal.
Cushon management will retain a 15% interest. Tim Levene, CEO of Augmentum Fintech, said in the firm’s release that financial firms like NatWest Group “are increasingly looking to accelerate their digital transformation through acquiring innovative, digital-first propositions. The pensions industry has certainly suffered from a lack of transformative innovation to date and with their Net-Zero pension offering and tech-led approach, Cushon is a true digital disruptor.”
Once approved, the Cushon Master Trust will work with NatWest Group to provide financial services to U.K. employers. It will initially be offered to NatWest Group’s commercial mid-market customers, and Cushon will continue operating in the workplace retirement and savings market, the NatWest release said.
The acquisition gives NatWest Group a workplace retirement and savings proposition to offer commercial customers and their employees. It also offers retirement plan participants an investment strategy designed to reduce the carbon emissions through investments in wind farms, solar energy, social housing and green hydrogen.
