LONDON (Alliance News) - Standard Life PLC on Wednesday said it agreed to buy wrap platform Elevate from the UK arm of French insurer AXA, in a move to boost the Edinburgh-based life insurer and asset manager's presence in the UK pensions and savings market.
Standard Life, which is funding the acquisition with existing cash, will take on Elevate in a move to create one of the UK's largest adviser platform businesses with combined assets under administration of GBP36.4 billion, 350,000 customers, and net asset inflows of GBP5.7 billion in 2015. The company did not say how much it will pay for Elevate.
Separately, AXA said the decision to sell Elevate to Standard Life followed a strategic review of the UK life and savings market. AXA also confirmed that it is in talks to sell its remaining UK life and savings assets, namely its SunLife direct protection business and traditional, non-platform investment and pension business, without naming any of the potential buyers.
AXA said it expects to receive about GBP650 million for all the life and savings businesses it's selling.
Elevate is a platform that allows financial advisers to manage client investments in one place. Standard Life expects to realise significant benefits as it combines Elevate with its existing adviser platform business.
As well as giving Elevate advisers and their clients access to Standard Life's investment hub, the move is set to expand the nationwide coverage of Standard Life's platform.
"This acquisition is a clear sign of our continued commitment to lead the UK adviser platform market. It demonstrates to advisers that, as the market consolidates, supporting their businesses and meeting the evolving needs of their clients is central to the long-term strategy of Standard Life," David Tiller, head of adviser and wealth manager propositions at Standard Life, said in a statement.
The deal requires regulatory approval.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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