Scotland-based Standard Life has bought Ignis Asset Management for £390 million. It was announced earlier this week that talks were occurring between the two firms.
The deal sees Standard Life increase the amount of money it manages by a third, making it one of the UK’s largest investment managers. The deal is part of the firm’s plan to move away from insurance to managing funds for outside clients.
Reforms made to the pensions market in the chancellor’s budget speech are expected to boost the asset management industry and lead to more insurers focusing on their fund management arms.
Commenting on the deal, 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 market. “
Following the deal Standard Life saw its shares rise by almost 7%.
The industry has seen a trend of consolidation, with Aberdeen Asset Management’s deal to buy Scottish Widow Investment Partnership being approved last week.