Standard Life today announces that its global investment management business, Standard Life Investments, has entered into an agreement with a subsidiary of Phoenix Group Holdings to acquire its asset management business, Ignis Asset Management. The transaction is conditional upon, inter alia, approval from the Financial Conduct Authority. SLI will pay £390 million for Ignis, including regulatory capital. The consideration will be settled in cash from Standard Life Group’s existing internal resources.
The acquisition of Ignis Asset Management will complement Standard Life Investments’ strong organic growth and strengthen its strategic positioning. It will deepen its investment capabilities, broaden Standard Life Investments’ third party client base and reinforce its foundation for building a business in the rapidly developing liability aware market.
The combined business will offer a full range of investment solutions, including active management for institutional and wholesale clients, discretionary wealth management for high net worth private clients and outcome orientated products for maturing pension schemes and insurance companies.
As part of the transaction, Standard Life Investments will enter into a strategic alliance with Phoenix through which Standard Life Investments will provide asset management services to Phoenix’s Life Company subsidiaries, including the potential to manage future books of assets that Phoenix may acquire. The Phoenix Life Company Boards are supportive of Standard Life Investments as their investment manager of choice, reflecting Standard Life Investments’ strength and heritage in managing insurance assets.
Ignis Chief Executive Officer, Chris Samuel, commented that “Ignis is now ready to move on to the next phase of its development by way of a combination with Standard Life Investments. Standard Life Investments will inherit a strong range of products and investment capabilities and a group of talented individuals who will be an asset to the merged business. I am delighted that the business is being handed over in such excellent shape”, said in the presentation of results. Ignis reporteda record £1.9 billion of net new assets raised in 2013, which builds on net sales of £1.6 billion in 2012 and £1.2 billion in 2011, and 85% of AUM outperformed benchmarks and peer groups in 2013 compared to 79% in 2012 and 73% in 2011. Combination with Standard Life Investments will enhance key client offerings including Absolute Return Bonds, Liquidity and Real Estate propositions.
Commenting on the transaction, Keith Skeoch, Chief Executive of Standard Life Investments, said: “This acquisition is entirely complementary, deepening our investment capabilities, broadening our third party client base and strengthening our strategic position from which to develop a business in the rapidly developing liability aware market. Standard Life Investments continues to perform very strongly”.
Ignis is a top 15 asset manager in the UK with £59 billion of AuM as at 31 December 2013 excluding stock lending collateral. Ignis earned revenues of £150 million and generated EBITDA of £52 million in 2013.
The transaction is anticipated to complete on or before 30 June 2014 and is conditional upon, inter alia, approval from the Financial Conduct Authority.
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