This specialist NorthgateArinso division, which provides outsourcing administration solutions and offers services to in-house pensions departments, has 64 clients.
Mike Addenbrooke, MD at Capita Hartshead, said: "Growth through acquisitions always brings new skills and expertise into our business, giving us a depth of experience and practical know-how that set us apart from our competitors.
"This acquisition will strengthen our flexibility in an ever-changing market. It will enable us to partner with pension schemes which are administered in-house by offering licensed software together with the support of other specialist pension services."
Mike Ettling, CEO of NorthgateArinso, added: "NorthgateArinso is in the business of providing industry-leading HR services, from processing payroll to talent management and HR strategy. We thought long and hard about the decision to sell the pension division and believe that in order to shape the company for continued success we must focus tightly on our core area of expertise - HR.
"The pension business has been a successful division. Our principal objective in the coming weeks is to work with Capita Hartshead to ensure a smooth transition for both the division's customers and its team." It is proposed that NorthgateArinso's 89 employees who work in the pension division will transfer to Capita Hartshead.
Completion of the contract is scheduled for 5 August, following a TUPE consultation with the employees.
