Benefex Financial Solutions has acquired Capita's employee benefits business following Capita's strategic review.

The acquisition is for the employee benefits arm of the business, with Capita retaining the pensions arm.

Capita decided to simplify its portfolio following the review by incorporating its pensions and benefits business within its people solutions division, and sell its employee benefits business.

Included in the sale was Capita’s flexible benefits consulting and administration, health and wellbeing, and global consulting and brokerage businesses.

Capita’s online benefits platform, Orbit, was also included in the sale to Benefex.

The firm stated that the sale with enable investment and growth to be focused solely on Capita’s pensions business that provides pensions consulting, investment and master trust services.

Capita administers the pensions of over 450 schemes in the UK and Ireland, covering over 4.7 million members.

Capita People Solutions executive officer, Chantal Free, commented: “We are delighted to have finalised the sale of our employee benefits business to Benefex. The transaction will enable us to grow and focus investment in our pensions business, particularly in areas of digitisation, data and member experience.

“We feel this is the right strategic decision for our business, as well as the best outcome for our clients, their employees and importantly our colleagues, who will move to Benefex as part of the transaction.”

Benefex will now take on all of Capita’s corporate and small and medium-sized enterprise employee benefit customers and its employees in this arm of the business.

“We are excited to be welcoming the Capita Employee Benefits team and customers to Benefex,” said Benefex founder and CEO, Matt Macri-Waller.

“We remain obsessed about our mission of helping our customers design and deliver exceptional employee experiences. The newly combined business will help us solve even more of the employee benefit and pension challenges our customers are facing.”

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