Standard Life has acquired Aegon UK for £2bn.
The transaction will be funded through a combination of debt, cash and the issue of ordinary shares in Standard Life (representing approximately 15.3% of the group’s enlarged share capital) to Aegon on completion.
Aegon will also become a strategic shareholder and asset management partner.
The acquisition is expected to increase group operating cash generation and IFRS adjusted operating profit by approximately £160m per annum, and to deliver £0.4bn of additional excess cash over the five years following completion.
Commenting on the transaction, Andy Briggs, group CEO of 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.
“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.”
