IOOF Holdings has agreed to acquire ANZ’s OnePath pensions and investments (P&I) and aligned dealer groups (ADG) in a deal worth $975m.

The ADGs to be acquired include: RI Advice, Millennium3, Financial Services Partners and Elders Financial Planning. The businesses employ 717 aligned advisers and have $19.5bn in funds under advice. OnePath P&I has over $48bn in funds under management.

ANZ said that the divestiture will result in an accounting loss of nearly $120m and will boost its common equity Tier 1 ratio by about 15 basis points. The sale will not have a material impact on ANZ’s profitability.

At the same time, the two parties also inked a 20-year strategic alliance under which ANZ clients will gain access to IOOF superannuation and investment products.

ANZ group executive wealth Alexis George said: “By partnering with IOOF, we are able to create greater value for our shareholders while also providing our customers with access to quality wealth products from a specialist provider with the right cultural fit, financial strength and digital capability.

“The sale of our P&I and ADG businesses provides ANZ with greater flexibility to consider options for the life insurance business including strategic and capital markets solutions.”

ANZ will retain OnePath Life Insurance, OnePath General Insurance, Life Company Products, ANZ Financial Planning and Lenders Mortgage Insurance.

The deal is expected to be wrapped up in approximately 12 months, subject to regulatory nod.