Following the merger of the insurer Standard Life and asset manager Aberdeen last year, Phoenix Group has now completed on the acquisition of Standard Life Aberdeen’s insurance arm, for £3.28bn. As part of this deal, Standard Life Aberdeen will acquire a share holding of just under 20% and retain its three adviser platforms, Parmenion, Wrap and Elevate, as well as its advice business, 1825.
This buy-out will be an expansion of the partnership between Standard Life Aberdeen and Phoenix Group, with Standard Life Aberdeen looking to grow the business through targeted investments.
Back in May, Standard Life Aberdeen had announced a proposed capital return to its shareholders of up to £1.75bn, with £1bn of the capital to be returned to shareholders and £750million as part of a share buyback programme.
The sale came after a severe blow when Standard Life Aberdeen’s biggest client, Scottish Widow, withdrew £109bn of assets from the company. Only a few months later, Lloyds Banking group cut ties with Standard Life Aberdeen stating that the company had become a competitor after the Standard Life and Aberdeen Asset Management merger.
In despite of this, and in light of the recent Phoenix Group acquisition, Sir Gerry Grimstone, chairman of Standard Life Aberdeen, said: “This is a momentous day for Standard Life Aberdeen as we continue to build a world-class investment company.
“Corporate transformations of this scale require clear vision and huge commitment from all those involved. Maintaining continuity of service and enhancing optionality for all our customers and clients has been a key imperative. My very best wishes for the future to all our employees and customers who are transferring to Phoenix.”
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Gunner & Co. work with IFAs looking to sell their business, and can give you more information if you wish – contact louise.jeffreys@gunnerandco.com
