Updated: IOOF takes Skandia
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IOOF Holdings has purchased Skandia Australia and Intech Investments from the Old Mutual Group.
IOOF announced today that it would be acquiring the Skandia interests for approximately $34 million, comprised of an up-front payment of $20 million to be paid on completion and a further payment to be made approximately 60 days after completion.
Completion is scheduled to occur on or around March 6.
The Skandia purchase follows the merger of IOOF and Australian Wealth Management (AWM).
Commenting on the move, IOOF chief executive Tony Robinson said the merger held many synergies for IOOF, Skandia, Intech and AWM. He said the acquisition strengthened IOOF’sposition in the platform and investment research markets and would complement the proposed merger between IOOF and AWM.
The transaction had been evaluated and pursued jointly by IOOF and AWM and represented an excellent opportunity to further build both the short-term and long-term growth prospects of the business.
The man who will become managing director of the merged IOOF and AWM businesses, Chris Kelaher, said he was supportive of the acquisition, which will increase the presence of the merged group in the Australian financial services industry.
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AUTHOR
Mike Taylor
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