Standard is paying £24.2m for the employee benefits technology and admimistration provider. Vebnet has a corporate client base of 145 and 293,000 employee users of its flexible benefits proposition.
Standard says it has bought Vebnet to accelerate the development of its corporate business through strengthening its customer base, opening up new routes to market and developing its existing product range. The insurer says the strategy for its corporate business is to develop the current proposition towards an integrated online employee reward and benefits portal it calls the Employee Wealth Plan.
It says this is in response to a trend to a more sophisticated overall design of benefits packages, with options such as corporate savings plans such as Isas, salary/bonus sacrifice, total reward, flexible benefits and share save plans becoming increasingly important.
Vebnet will continue to offer its proposition and services under its own brand as well as supporting the development of Standard Life’s enhanced offering in the corporate market place. Vebnet directors unanimously recommended the offer.
Sandy Crombie, group chief executive of Standard Life, says: “I’m delighted that Vebnet is to become part of the Standard Life Group. The combination of Vebnet and Standard Life will provide significant opportunities in the corporate market. This is a rapidly-evolving market and an increasingly important part of our business. By adding enhanced flexible benefits and online solutions to our existing employee benefits platform we are able to create a proposition which will offer employers and employees improved choice and flexibility. There is a strong strategic fit between our businesses and this will give Standard Life the opportunity to work with the Vebnet team and create additional value for shareholders.”
Gerry O’Neill, chief executive of Vebnet says: “The Vebnet directors believe that the acquisition by Standard Life will create exciting opportunities for both customers and staff as the business continues to thrive within a larger organisation, enabling Vebnet to grow faster than it would be able to as an independent company. The price offered by Standard Life represents an attractive price for shareholders, reflecting the successful development of Vebnet in recent years and its position as one of the market leaders.”
