Legal & General Group (L&G) has agreed to offload Cofunds, its investment platform in the UK for advisers and other financial institutions, to Dutch insurer Aegon in a £140m deal.
The deal will include the sale of the Investor Portfolio Service (IPS) platform along with Cofunds' retail and institutional business.
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All employees in Cofunds and IPS will join Aegon as part of the deal.
L&G expects the sale to boost its Solvency II surplus by £125m, which was £5.3bn at the end of 30 June 2016. It also expects the sale to raise its economic capital surplus by £105m.
The deal, which is subject to regulatory nod, is expected to close by end of December this year.
L&G group CFO Mark Gregory said: "Cofunds is at the point where it requires a significant upgrade in technology to exploit its leadership position in the UK platform market. We have concluded that this long term commitment is best achieved under Aegon's ownership as a specialist wealth platform provider."
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