"We are committed to growing our business alongside the intermediaries that we depend on and will use our enhanced scale to improve user experience, drive proposition enhancement and lower the cost over time."
Intermediaries that use Cofunds will now upgrade to the enhanced version of Aegon’s platform, and a roadmap for development and integration will be unveiled on completion of the deal in Q4.
The deal includes taking ownership of the Legal & General branded Investor Portfolio Service platform powered by Cofunds.
Aegon expects to generate annual cost savings of £60 million which will be spread across Aegon UK businesses and will be equivalent to 15% of the combined UK cost base.
The purchase follows Aegon’s recent acquisition of BlackRock’s UK DC platform.
Aegon’s acquisition of Cofunds creates a combined entity with £87.7 billion in assets under administration, rising to around £97.9 billion with the inclusion of BlackRock assets.
Adrian Grace, Aegon UK Chief Executive, said: "Aegon is now well on the journey from a traditional life and pensions provider to the largest workplace and retail platform business. We are committed to growing our business alongside the intermediaries that we depend on and will use our enhanced scale to improve user experience, drive proposition enhancement and lower the cost over time.
"For users of the platform, today’s deal provides certainty regarding its future and we will keep what has made Cofunds a powerhouse and the primary platform for so many advisers, and improve what needs improving. Our success will depend on bringing advisers with us and delivering a smooth transition. We recognise the scale of the task at hand and the importance of getting the detail right. We will work closely with advisers throughout this process to make sure we do just that.”
David Hobbs, Cofunds’ Chief Executive, added: "Cofunds was a pioneer in the platform market and has built a strong franchise with over 750,000 retail clients plus an enviable institutional business. We’re delighted with our new ownership and the combined proposition that we’ll be able to bring to intermediaries. The combination of Aegon’s retirement expertise and technology alongside our deep knowledge and experience of platforms positions us uniquely in the market. This is a strong endorsement of our team and our proposition, and is a clear signal that our business is here for the long-term.”
