Aegon has announced an agreement to acquire BlackRock’s UK Defined Contribution platform and administration business. This will strengthen its position as a leading player in the UK workplace savings market.
- Aegon to acquire approximately £12 billion (approx. €15 billion) of assets and 350,000 customers, creating a £30 billion (approx. €38 billion) platform-based workplace savings business
- BlackRock will deepen its relationship with Aegon providing its customers investment management solutions
Paul Bucksey from BlackRock will be appointed Managing Director of the combined workplace business, which brings together the complementary capabilities of both propositions to offer Defined Contribution (DC) services to schemes of all sizes and types.
Leveraging Aegon's digital expertise
The strength of the digital experience provided by Aegon's platform and its expertise in contract based schemes will be supplemented by a focus on trust-based and investment-only markets, in which BlackRock's DC platform and administration business specializes.
Having a complete suite of workplace solutions that includes Individual Savings Accounts (ISAs), General Investment Accounts (GIAs), guarantees and Self-Invested Personal Pensions (SIPPs) will appeal to employers seeking additional solutions.
The workplace savings market is expected to triple in size over the next 10 years. Aegon is well positioned to take advantage of this growth.
Adrian Grace, CEO of Aegon UK, said: "The combined strength and breadth of expertise makes us a compelling choice. With employers demanding additional solutions to meet employees' needs to and through retirement, workplace savings are no longer just about traditional DC pensions.
"This makes it an exciting market and with an expectation it will triple in size over the next 10 years. We are well positioned to take advantage."
The transaction deepens Aegon's relationship with BlackRock, who will continue to be a key partner providing investment management for Aegon clients. BlackRock is renowned for its strength as a leading investment manager. It means it retains its role as the primary investment manager for the clients who will transfer to Aegon as part of the transaction.
Seamless transition for customers
Aegon's retention of BlackRock's specialist employees and established systems will provide stability and ongoing continuity for Trustees, plan sponsors and their advisers. BlackRock DC clients will continue to receive the same high levels of service from the Peterborough servicing center.
The transaction is subject to customary closing conditions and a Part VII transfer of the underlying assets and liabilities to Aegon, which is subject to regulatory and court approval.
