JLT Benefit Solutions, a mid-sized pensions and investment consultancy firm, has acquired its smaller rival Alexander Forbes for £17m, creating a merged firm with the potential to take the number four slot in the UK market.

Alexander Forbes Consultants & Actuaries is the UK subsidiary of the Alexander Forbes group of South Africa. The firm, led by Tony Gusmao, specialises in advising UK firms on employee benefits, pensions and investment matters. It had a revenue of £27.7m for the 12 months to the end of March.