Standard Life Investments (SLI) has confirmed it will acquire Ignis Asset Management for £390m by the end of June.
The deal will be settled in cash from Standard Life Group’s existing internal resources and the acquisition will add £59bn to its assets under management, SLI said.
According to SLI, the acquisition will deepen its investment capabilities, broaden its third-party client base and reinforce its foundation for building a business in the rapidly developing liability aware market.
It will enhance SLI’s expertise and investment capability in government bonds and liquidity. SLI has a suite of absolute return funds which will be expanded with the addition of Ignis’ Absolute Return Government Bond Fund and its complementary investment process.
SLI chief executive Keith Skeoch (pictured) 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. 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.”
The acquisition will see SLI work closely with Ignis’ parent company Phoenix Group by providing asset management services to Phoenix’s Life Company subsidiaries, including the potential to manage future books of assets that Phoenix may acquire.
The transaction is anticipated to complete on or before 30 June and is conditional upon approval from the Financial Conduct Authority.
The announcement comes as Ignis revealed its annual results which showed throughout 2013 the firm achieved an operating profit of £49m – a 14% increase year-on-year – and a record £1.9bn of net new assets raised in 2013, which builds on net sales of £1.6bn in 2012 and £1.2bn in 2011.
Commenting on the acquisition, Ignis chief executive Chris Samuel said: “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.”
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