Standard Life Investments (SLI) has agreed a £390m deal to acquire Ignis Asset Management from Phoenix Group.
SLI said the deal, subject to Financial Conduct Authority (FCA) approval, would deepen its investment capabilities, particularly in the absolute return space, and broaden its third party client base.
It described Ignis as a top 15 asset manager in the UK with £59bn of assets under management as at 31 December 2013. It earned revenues of £150m and generated EBITDA of £52m in 2013.
It added 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.
SLI chief executive Keith Skeoch said: "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 deal is expected to complete in June.
Paul Bruns and Elaine Parkes
3,000 left to transfer
Record numbers of people aged 90 plus
From 3 to 10 October