Closed-end life group Chesnara has acquired pensions provider Save & Prosper Group, a subsidiary of JPMorgan Asset Management Marketing, for £63.5m.
The deal will be financed by a share issue and £40m loan from the Royal Bank of Scotland.
The placing consists of 10,458,877 new shares, representing approximately 9.99% of Chesnara's issued share capital, together with up to 3,096,194 treasury shares, representing 2.96% of its share capital.
"This is exactly the type of opportunity we have been looking for," says Chesnara CEO Graham Kettleborough.
"It fully matches our strategic acquisition criteria in terms of size, the attractive discount to embedded value, its complementarity to our existing UK business and the potential capital and financial synergies which we expect will provide further support to our dividend policy."
Save & Prosper Group, consisting of Save & Prosper Insurance and subsidiary Save & Prosper Pensions, is a provider of pension and life assurance products closed to new business.
Chesnara says Save & Prosper's outsourced business model complements its own model and adds it will continue to operate the group in "substantially the same manner going forward".
JPMorgan Asset Management will continue to provide investment management services, whilst current outsourced provider HCL Insurance BPO Services will be retained.
The deal comes as consolidation continues for the UK and European life and pensions sector.
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