Standard Life is set to buy Ignis Asset Management for £390 million.
Standard will buy the asset manager from its parent company the Phoenix Group.
As part of the transaction, Standard Life Investments will provide asset management services to Phoenix’s life company subsidiaries including the potential to manage future books of assets that Phoenix may acquire.
Standard Life will pay £390 million for Ignis including regulatory capital. The consideration will be settled in cash from Standard Life group’s existing internal resources.
The transaction is expected to be completed on or before 30 June 2014.
David Nish (pictured) chief executive at Standard Life said: 'The acquisition of Ignis continues the delivery of our group strategy to grow assets under management through enhancing our investment capabilities and expanding our offering to meet the changing needs of our customers. It will deliver enhanced earnings and cash generation and support future growth in revenues.'
Standard Life said it was in exclusive talks over the purchase of Ignis Asset Management with discussions between it and Phoenix Group at an advanced stage.
However earlier this week both parties stressed there was no certainty that any transaction will be agreed.
The deal would push Standard Life Investments ahead of Aviva Investors and M&G in terms of assets under management with more than £250 billion.
According to the Sunday Times Canadian bank RBC and Australian investment firm Macquarie were also interested in a deal for Ignis which manages around £67.7 billion and has been touted for a sale as Phoenix comes under pressure from investors to reduce its £2 billion of debt.