Legal & General Group (L&G) has agreed to buy out the 75% of Cofunds Holdings Ltd. it does not own already for GBP131 million (US$199 million) in cash to boost its electronic platforms.
The transaction values Cofunds, which provides technology to allow sales advisers and financial firms to get information about products electronically, at GBP175 million.
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The UK-based investment platform for financial services, Cofunds, has over GBP50 billion of assets under administration.
Mark Gregory, chief executive officer of savings at Legal & General, said: "Digital solutions is one of our five drivers of growth. The projected growth in the investment platform market is substantial and we expect Cofunds to be a major beneficiary of this growth."
L&G said it would seek acquisitions this year in its existing areas of expertise. It entered a joint-venture on March 18 to acquire Scottish housing developer Cala Group Ltd. from Lloyds Banking Group Plc for GBP210 million. The insurer, on March 6, also raised its dividend 20% after sales, cash flow and operating profit increased on demand for retirement products.
The Cofunds purchase is subject to regulatory approval, which is due to be completed in the first half of 2013.
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