Aberdeen Asset Management buys Lloyds business

Aberdeen Asset Management has agreed to buy Lloyds Banking Group's European asset business Scottish Widows Investment Partnership Group (SWIP).The company will acquire SWIP and its related private equity and infrastructure fund management businesses for £550m. The acquired business includes the Investment Solutions division of SWIP, which is a separate investment group that is responsible for the design, development and management of investment solutions for Lloyds' wealth clients.The transaction will be satisfied by the issue of 131.8m new Aberdeen shares to Lloyds, equivalent to about a 9.9% stake in the group. Aberdeen said there will be a performance-related five year earn-out payment of up to £100m, dependent on growth delivered by the strategic relationship with Lloyds in the Investment Solutions business. "The acquired business will add approximately £136bn of assets under management with annualised revenues of approximately £234m to the group," the firm said.RD