Aegon buys Cofunds in £140m deal

The announced was made as part of Aegon’s half year results and confirms months of speculation surrounding the deal.

The acquisition of Cofunds, which has around 17,000 registered individuals and 800,000 investors, compared to Aegon’s 12,105 and 286,000, will create a platform with assets under administration of around £85 billion.

The combined business will now have three million customers and advisers using Cofunds will be upgraded to an enhanced version of Aegon’s platform.

Aegon UK chief executive Adrian Grace said: “From a standing start a few short years ago, we have transformed our business beyond all recognition. 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.”

Cofunds chief executive David Hobbs said: “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.”

Cofunds uses technology provider IFDS, while Aegon has a contract with GBST.

Aegon has been moving away from a traditional life office and towards the platform market for some time. In May it acquired BlackRock’s defined contribution platform along with 350,000 customers.