Marvin OnumonuStandard Life plc has confirmed that it has acquired Aegon UK for £2.0bn.
The deal will create the UK’s largest retirement savings and income business, covering 16 million customers with around £480bn in assets under administration.
The combination is expected to strengthen Standard Life’s cash, capital and earnings position, while moving the group up to the UK’s second largest workplace pensions platform by assets and customers.
Standard Life will also become the UK’s second largest retail pensions and savings platform.
The acquisition is being funded through cash, debt and shares in Standard Life.
Aegon will become a strategic shareholder and asset management partner.
The deal is forecast to increase group operating cash generation and IFRS adjusted operating profit by roughly £160m per year, and deliver £0.4bn of extra cash over the next five years.
Andy Briggs, group chief executive at Standard Life, said: “Our agreement to acquire Aegon UK significantly accelerates our vision to be the UK’s leading retirement savings and income business.
“We will be in an even stronger position to meet the evolving needs of our 16 million customers with enhanced digital, advice and distribution capabilities across Workplace and Retail, strengthening our standing in one of the world’s most attractive markets.
“Furthermore, the transaction accelerates our shift to capital-light whilst strengthening our cash, capital and earnings position to create increased value for shareholders.”
Briggs added: “With financial wellbeing at the heart of everything it does, Aegon UK’s values and culture are aligned with our own.
“Together, we will not only be stronger, we will be better – helping our customers achieve better outcomes and greater financial security in later life.
“I look forward to welcoming everyone at Aegon UK to Standard Life in due course and working together to capture the huge potential in front of us.”
