MUFG has struck a binding deal to acquire Grow Inc, the upstart administrator that has spent the past three years peeling clients away from it.

MUFG CEO and managing director Vivek Bhatia said the proposed acquisition reflected the changing needs of funds for flexible administration and technology solutions, and that Grow “would complement our existing capabilities and technology platforms”.

“Importantly, we believe this would further strengthen our long-term resilience, investment capability and commitment to the administration ecosystem that supports millions of Australian superannuation members every day.”

The deal marks a sharp turn in a rivalry that has defined the administration market’s recent history.

HESTA completed its transition from MUFG to Grow in 2025 — a move then-CEO Debby Blakey said was vital to the fund “maintaining its competitive edge”, but which required a limited service period that locked members out of their accounts and drew significant public and media scrutiny.

Australian Ethical, NGS Super and Vanguard have also moved to Grow, while MUFG has been under pressure to turn its performance around following high-profile failings at funds including AustralianSuper and Cbus.

In a statement, HESTA welcomed the proposed tie-up with its former administrator.

“HESTA is pleased to support MUFG Pension & Market Services’ proposed acquisition of GROW Inc as we believe the transaction has the potential to accelerate platform development and delivery of enhanced, personalised member services,” a HESTA spokesperson said.

“While the acquisition remains subject to conditions, including regulatory, shareholder and court approvals, as an early adopter of Grow’s GROW’s innovative technology, our established relationship with both organisations positions us well to continue to optimise the platform.”

The spokesperson said that its existing platform stays in place, with no expected impact on the fund’s contact centre or core processes.

Grow launched in 2017 with ambitions of being a “neo-super” fund before pivoting to administration, with then-CEO Mathew Keeley arguing in 2024 that incumbents faced a “perfect storm” of rising consumer expectations, creaky legacy technology and poor strategic decisions.