Standard Life Investments has acquired Ignis Asset Management, signalling a major strategic shift into the funds management arena for the traditionally insurance-orientated company.
Standard Life Investments entered into an agreement with parent company Phoenix Group Holdings to purchase the asset management business for £390 million pending approval from the UK’s Financial Conduct Authority.
The acquisition will see Standard Life Investment’s third party assets under management grow to 64 per cent of its total book value and will add four new long-term contracts to its insurance client base.
Ignis had £59 billion in assets under management at the end of last year.
Standard Life Investments chief executive Keith Skeoch said Ignis was “entirely complimentary” to its existing suite.
“Continuity of investment performance and commitment to client service and relationship management remain our key priorities, with migration and integration of Ignis taking place in a controlled manner under unified management from day one,” he said.
The transaction is expected to be completed by June 30, 2014.