Aberdeen Asset Management has bought fund manager Scottish Widows Investment Partnership from Lloyds Banking Group in a £650m deal as part of a “strategic partnership” with the lender.
The fund manager is acquiring SWIP via the issue of 131.8m new shares to the state-backed bank worth £550m at 420p a share, giving it a 9.9pc stake in Aberdeen.
Aberdeen will also pay up to £100m to Lloyds depending on growth delivered by the “strategic relationship”.
SWIP will add around £136bn of assets under management with annualised revenues of around £234m to the group and ensure that Aberdeen overtakes Schroders as Europe’s biggest investment house.
Aberdeen is acquiring SWIP’s related private equity and infrastructure fund management businesses as well as its Investment Solutions division which designs, develops and manages of investments for Lloyds’ wealth clients.
Martin Gilbert, chief executive of Aberdeen Asset Management, said: “The formation of a strategic relationship with Lloyds Banking Group, which includes the acquisition of Scottish Widows Investment Partnership … is an important step in cementing Aberdeen’s position as one of the world’s leading investment groups.”
Source: The Telegraph. Read full article here.