The financial services group INDEXO, which includes the pension management company IPAS INDEXO, AS INDEXO Atklātais Pensiju Fonds, and AS INDEXO Bank, has reached an agreement with the pension management company IPAS VAIRO on a share purchase transaction. As a result, INDEXO will integrate VAIRO into its group, including taking over the management of its pension assets. VAIRO’s investment plans will continue to operate as before, and no action is required from VAIRO clients in the context of this transaction.
To complete the deal approval is required from Latvijas Banka for IPAS INDEXO to acquire a qualifying holding in IPAS VAIRO, as well as both IPAS INDEXO and IPAS VAIRO shareholders must approve the transaction. At an extraordinary shareholders' meeting on July 11, INDEXO will decide on a new share issue and capital raising to execute the transaction.
The transaction foresees that IPAS INDEXO will acquire 100% of VAIRO’s shares, thereby taking over the management of all VAIRO pension plans and continuing their operation within the INDEXO group. No changes are planned in INDEXO’s management structure – the management board and supervisory board will continue in their current composition.
“We are two financial companies founded by local entrepreneurs, and we have decided to join forces to continue challenging a market dominated by foreign financial institutions. INDEXO already has more than 6,000 shareholders, and with the addition of VAIRO, we will strengthen our market position as a financial services group built in Latvia and working for the benefit of Latvian residents.
The core idea behind INDEXO has always been to foster competition in Latvia’s stagnant financial sector – initially by introducing low-cost, index-linked investment plans, and now by offering refinancing solutions for expensive mortgage loans. By integrating VAIRO into the INDEXO group, we will become stronger and will be able to further ignite competition in both the pension and banking sectors, ultimately benefiting the people of Latvia,” says Valdis Siksnis, Chairman of the Management Board of INDEXO Bank and one of the founders of INDEXO.
“The merger of pension plans with INDEXO brings several long-term benefits to VAIRO clients – lower management fees, convenient access to their pension savings via the INDEXO Bank mobile app, and in the autumn, we plan to introduce a new tool that will allow clients to customize the management of their savings within a life-cycle framework. VAIRO clients do not need to take any action – their chosen pension plan will continue to operate under the same conditions,” says Artūrs Roze, Member of the Manager Board and Asset Manager at IPAS INDEXO.
The transaction is expected to be completed in the coming months, with VAIRO’s operations gradually integrated into INDEXO.
“In a very short time, we successfully entered and established ourselves in the Latvian pension management sector with an innovative offering that creates value for our clients. We believe that by joining forces with a company that shares similar values and goals, we can better and more quickly drive positive change in Latvia’s financial sector and create more benefits for the people and society of Latvia,” says Reinis Rubenis, Chairman of the Supervisory Board of IPAS VAIRO.
Before the transaction, IPAS INDEXO manages pension assets of approximately EUR 1.34 billion entrusted by more than 144,000 clients. IPAS INDEXO is also the 100% parent company of AS INDEXO Bank, which began serving retail clients at the end of August last year and currently has more than 37,000 clients and total client deposits exceeding EUR 48 million. Meanwhile, IPAS VAIRO has approximately 14,000 clients and EUR 87 million in pension assets under management. By joining forces, after the transaction, IPAS INDEXO’s pension assets under management would approach the EUR 1.5 billion mark, and the total number of clients in the INDEXO financial group (including the bank) would approach 200,000.
About INDEXO
INDEXO is a financial services group that includes pension management companies and INDEXO Bank.
INDEXO, an investment management company licensed by the Bank of Latvia, offers modern 2nd and 3rd pillar pension plans in Latvia. It is one of the fastest-growing pension managers in the Baltics, with over 144 thousand customers and more than EUR 1.34 billion assets under management.
INDEXO Bank, a credit institution licensed by the European Central Bank, serves over 37 thousand clients, with total client funds amounting to EUR 48.3 million and EUR 12.2 million in issued consumer loans.
Founded and headquartered in Latvia, INDEXO is a Nasdaq Riga-listed company with more than 6,400 shareholders. Its mission is to fight for a better financial environment in Latvia and strengthen the well-being of Latvian residents by providing modern and personalized financial services. For more information visit www.indexo.lv.
About VAIRO
VAIRO is an independent local pension management company founded by experienced Latvian entrepreneurs and financiers with a mission to grow the savings of Latvian residents. Since 2023, VAIRO has offered adaptive 2nd pillar pension plans, providing modern and age-tailored pension savings management. In just a year and a half, nearly 15,000 Latvian residents have chosen VAIRO’s adaptive pension plans, making VAIRO one of the fastest-growing pension managers in Latvia.