NatWest Group PLC (LSE:NWG) said it has entered into an agreement to buy an 85% stake in workplace savings and pensions fintech company, Cushon.
According to a press release, the bank will pay £144mln for its stake, with the remaining 15% held by Cushon’s management. The deal is expected to be completed later in 2023.
“By combining the scale, experience and expertise of NatWest Group with Cushon’s innovative workplace savings and pensions products, this acquisition allows us to enhance our services to commercial customers and support the financial wellbeing of their staff,” NatWest chief executive Alison Rose said in the statement.
Cushon’s primary products are its workplace ISA and master trust pension, which offers an investment strategy designed to drive down the financed CO2 emissions of customers’ investments, Natwest noted.
The FTSE 100-listed bank said the acquisition will provide it with workplace pensions and savings propositions, enabling the group to offer a new suite of financial well-being services to customers and employees.
Augmentum Fintech, a European fintech fund, said it will receive £22.8mln following the completion of the acquisition. The group said it first invested in Cushon in 2021, investing £5mln in its Series A fundraising round and providing a further £5.8mln since.
“The acquisition of Cushon by NatWest Group marks Augmentum’s fifth realisation since IPO and demonstrates the strategic nature of many of the assets in our portfolio,” said Augmetum chief executive Tim Levene.