Friends Ivory & Sime (FIS) has conditionally agreed to buy RSA Investments, the UK asset management ...
Friends Ivory & Sime (FIS) has conditionally agreed to buy RSA Investments, the UK asset management arm of Royal & SunAlliance Insurance Group, for £240m.
As part of the deal, FIS becomes the investment manager of the UK life insurance and general insurance funds of the RSA Group for an agreed 10-year period. The deal will effectively double FIS's funds under management from £34bn to £70bn.
Howard Carter, chief executive of FIS, said: 'This transaction is transformational for FIS in terms of scale, doubling our funds under management and propelling us into the top 10 active investment managers in the UK.' Carter suggested that the RSA Investments brand was under threat. He said: 'We shall also have an expanded platform for the development of our Isis brand in the retail market.'
Due to the size of the proposed acquisition compared to FIS, the acquisition is conditional on the approval of FIS shareholders, which will be sought at an EGM. A circular is being dispatched to FIS's shareholders convening the EGM for later this month. Friends Provident, the majority shareholder of FIS, has undertaken to vote in favour of the transaction.
More Than, the direct channel of the RSA Group, would continue to sell RSA Investments' funds under the terms of the FIS deal.
An ambitious objective
'Something completely new'
'Illusion of control'
Reasons to be cheerful
Total investment reaches £9m