Aberdeen buys SWIP for £660m

Aberdeen Asset Management has bought Scottish Widows Investment Partnership (SWIP) from Lloyds Banking Group for some £660m.

While the sale does not include Scottish Widows, the group’s life, pensions and investment business, Aberdeen will also take over Scottish Widows private equity and infrastructure fund management businesses.

The consideration for the acquisition of approximately £550m and will be satisfied by the issue of 131.8m new Aberdeen shares to Lloyds, equivalent to an approximately 9.9% stake in the Group following completion of the acquisition, Aberdeen also said.

In addition, there will be a performance-related five year earn-out payment of up to £100 million dependent on growth delivered by the strategic relationship
with Lloyds in the Investment Solutions business. The acquired business will add approximately £136bn AUM with annualised revenues of approximately £234m to the group.

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