Standard Life Wealth (SLW) is to pay up to £83.5m for Newton's private clients division, adding an extra £3.6bn in assets under management to its business.
The Newton business has approximately 3,000 UK and international high net worth clients; SLW said the deal will also bring a long-only investment proposition to its own volatility-managed, target return focus.
The transaction expected to complete in 7 months. All 79 Newton private client staff will transfer to Standard Life.
The final price is contingent on the value of assets under management transferred to and retained by SLW.
"The transaction is expected to more than triple SLW's discretionary assets, creating a private client wealth manager in the UK with increased profitability, significant scale and market presence," SLW said in a statement.
"This acquisition complements SLW's impressive growth to date and provides us with a unique opportunity to accelerate our onshore and offshore strategy," said Standard Life Wealth chief executive Richard Charnock.
"We are bringing together additional skills, clients and assets to create a discretionary wealth manager of significant scale and market presence."
Newton CEO Helena Morrissey said: "Newton's overall business has evolved over the past several years to the point where private clients now make up just a small portion of our total assets under management."
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