Aegon UK is to buy Novia Investment Services Limited (NISL) from parent Novia Financial in a deal which brings its platform development business in-house, IFAonline's sister title Investment Week can reveal.
Launched in 2011, NISL was created by Novia to design and build Aegon's award-winning corporate platform, Aegon Retirement Choices.
Having spent the last three years building and running the platform, Aegon has opted to exercise its option to buy it outright.
The takeover will see the transfer of the 40-strong team that currently works at NISL, including the business' COO Richard Denning.
The deal comes months after Aegon announced it was bringing the administration of the platform - which has already raised over £1bn in AUA - in-house. That will also transfer over in January.
Adrian Grace, chief executive of Aegon UK, said the plan had always been to bring the entire platform in-house.
"Like any big corporate, we want to control our own destiny, but this deal is about keeping the team in place and continuing to innovate in the retirement space," he said.
Prior to hiring Novia to build and administer its platform, Grace said Aegon had been "a long way behind the market" and he praised Novia for its success.
"They have been a fantastic partner for us, winning us four awards, and now we are looking forward to continuing the platform's development over the next few years."
As well as running ARC for the last three years, Novia Financial - headed by chief executive Bill Vasilieff (pictured) - has established a strong position in what is a highly competitive market.
The platform has seen a surge in assets over the last year, to a current level of £2.3bn. Year to date in 2013, new business is up over 70%.
Vasilieff added: "The project between Aegon and Novia has been an unqualified success for both businesses and we would like to thank Richard and all the NISL staff for their commitment in ensuring this success."
Both parties declined to reveal the cost of the takeover. It is expected to be completed by the end of 2013 or early in Q1 next year.
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