Financial services group IFG has acquired James Hay, a provider of self invested personal pensions (SIPPs), from Banco Santander for up to £38.9 million.

James Hay was acquired by Abbey National, now a subsidiary of Santander, in 1994 and employs 533 staff. The Salisbury-based firm has over £8 billion SIPP assets under administration.

Mark Bourke, chief executive of Dublin-based IFG, says that revenue at James Hay is stable and recurring and that the SIPP market is growing.

In the six months to June 2009, IFG reported revenue of €49 million (£44.7 million) and pre-tax profits of €8.5 million.