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Aberdeen, Lloyds form strategic relationship
21 March 2014
Asset manager to acquire Swip
Aberdeen Asset Management
Scottish Widows Investment Partnership
Aberdeen Asset Management has entered into a definitive
agreement to form a long term strategic relationship with
Lloyds Banking Group.
As part of the deal, Aberdeen will acquire Scottish Widows
Investment Partnership Group (Swip) and Swip’s
related private equity and infrastructure fund management
The transaction is subject to certain regulatory approvals. The
acquired business includes the investment solutions division of
Swip, which is a separate investment group responsible for the
design, development and management of investment solutions for
Lloyds’ wealth clients.
The strategic relationship will operate across
Lloyds’ wealth, insurance, commercial banking and
retail businesses and is expected to result in a stronger asset
management offering for customers.
The consideration for the acquisition of approximately
£550m will be satisfied by the issue of 131.8 million new
Aberdeen shares to Lloyds, equivalent to an approximately 9.9%
stake following completion of the acquisition.
In addition, there will be a performance-related five year
earn-out payment of up to £100m dependent on growth
delivered by the strategic relationship with Lloyds in the
investment solutions business. The acquired business will add
approximately £136bn of AuM with annualised revenues of
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.
We are confident that this transaction will deliver
considerable additional value to our expanded client base and
this will therefore benefit our shareholders."