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Standard Life Investments seals Ignis buy in £390 million deal
by Dylan Lobo on Mar 26, 2014 at 07:12
Standard Life Investments (SLI) has agreed to buy Ignis Asset Management for £390 million.
The Edinburgh-based fund manager said Ignis would complement its strong organic growth and 'reinforce its foundation' for building a business in the rapidly developing liability aware market.
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.
As part of the transaction - which is expected to be completed by the end of June - SLI will enter into a strategic alliance with previous Ignis owner Phoenix through which it will provide asset management services to Phoenix’s life company subsidiaries, including the potential to manage future books of assets that Phoenix may acquire.
SLI also highlighted the capture of the Ignis Absolute Return Government Bond fund, which complements its existing suite of absolute return funds including Global Absolute Return Strategies , Global Focused Strategies and Absolute Return Global Bond Strategies.
Commenting on the transaction, Keith Skeoch (pictured), chief executive of SLI, 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.'
Standard Lifechief executive David Nish added: 'Our group strategy is built on a strong understanding of our markets and customers. We will continue to lead market thinking and identify opportunities as the landscape changes to move our business forward and drive value for shareholders.
'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.'
The Ignis boom
Ignis' business has been booming recently thanks in part to the popularity of its Absolute Return Government Bond and Property funds.
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