Acquisition

Standard Life Investments acquires Ignis Asset Management

Standard Life’s global investment management business, Standard Life Investments, is to acquire Ignis Asset Management from Phoenix Group Holdings.

The transaction is conditional upon approval from the Financial Conduct Authority.
 
The acquisition of Ignis will complement Standard Life Investments’ 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.
 
Standard Life Investments will pay GBP390m for Ignis, including regulatory capital. The consideration will be settled in cash from Standard Life Group’s existing internal resources.
 
Ignis is a top 15 asset manager in the UK with GBP59bn of AuM as at 31 December 2013 excluding stock lending collateral. Ignis earned revenues of GBP150m and generated EBITDA of GBP52m in 2013.
 
Keith Skeoch, chief executive of Standard Life Investments, says: “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 transaction is anticipated to complete on or before 30 June 2014.
 
Fenchurch Advisory Partners is acting as exclusive financial adviser and JP Morgan Cazenove is acting as corporate broker to Standard Life.

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