Australian fund manager Betashares is entering the superannuation industry with the acquisition of Bendigo and Adelaide Bank's super business.
Terms were not disclosed for the deal to buy Bendigo Superannuation, which has more than 19,000 members and $1.4 billion of funds under administration.
Bendigo and Adelaide Bank's chief customer officer for consumer banking, Richard Fennell, said the bank decided to sell business to reduce complexity.
"Betashares was selected following a process that took into consideration several factors, including alignment with our own strong customer focus and the ability to enhance member outcomes," he said on Wednesday.
"As part of this process, the bank has prioritised a smooth transition to a new provider."
Betashares CEO Alex Vynokur said the move into superannuation was one the company had been actively exploring for some time, as part of a longer-term strategy to expand its business into the broader financial services sector.
Betashares is most known for its exchange-traded fund (ETF) business, which recently surpassed $30 billion in funds under management.
"Over the course of the next decade, we have a vision for the firm to continue developing into a leading, independent Australian financial services business," Mr Vynokur said.
The acquisition is subject to regulatory approvals and is expected to complete in 2024.
