Legal & General Group has agreed the sale of a book of retail investments from its personal investing business to Fidelity International.
The LGIM UK Personal Investing business comprises almost 300,000 customers with £5.8bn assets under management held in legacy ISA, junior ISA and general investment account products, invested in Legal & General Investment Management (LGIM) funds.
The acquisition will double the number of customers for Fidelity's Personal Investing business. Fidelity Personal Investing has 280,000 customers with £20.3bn assets under management.
This is an exciting acquisition for us"
On transfer to Fidelity, any customers affected will remain invested in LGIM funds and the firm will continue to earn an investment fee.
Stuart Welch, Global Head of Personal Investing and Advisory, Fidelity International, said: "This is an exciting acquisition for us. It follows our recent purchase of Cavendish Online Investments Limited and reflects our ambition and commitment to the UK direct investor market.
"Our platform is designed to help investors achieve their long-term financial goals and we provide guidance and support at every life stage. Our Wealth and retirement planning services, guidance service and tools will help those who want to make the most of their retirement savings and investments. We look forward to welcoming LGIM's customers and helping them meet their financial goals."
The sale will not impact LGIM's intermediary retail business, clients or associated pension and investment products, which will continue to operate as normal.
Michelle Scrimgeour, chief executive officer at Legal & General Investment Management, added: "This transaction is a positive step for LGIM and particularly for our direct to consumer business. It optimises the strategic fit between two highly-regarded organisations and in particular supports customers, who now gain Fidelity International's scale and operational capacity in these specific products while continuing to benefit from the LGIM investment expertise which underpinned their original product purchase."
The deal is expected to complete in the next 12 months.