Aberdeen Asset Management has confirmed that it is to acquire Scottish Widows Investment Partnership (SWIP), as well as its private equity and infrastructure fund management businesses.
The acquisition, which was first proposed in October, includes a long-term strategic relationship with SWIP’s parent company, Lloyds Banking Group.
The consideration for the acquisition of approximately £550 million will be satisfied by the issue of 131.8 million new Aberdeen Asset Management shares to Lloyds Banking Group, equivalent to a stake of approximately 9.9%.
In addition, there will be a performance-related, five-year earn-out payment of up to £100 million, dependent on growth.
The acquisition will add approximately £136 billion of assets under management, with annualised revenues of approximately £234 million, to Aberdeen Asset Management.
Martin Gilbert, chief executive of Aberdeen Asset Management, said: “This transaction is significant for the long-term prospects of Aberdeen in a number of ways.
“It strengthens our investment capabilities and adds new distribution channels; the acquisition of [SWIP] adds scale to our business across a range of asset classes; and it also introduces a strategic relationship with Lloyds Banking Group.”