Subject to regulatory approval, the deal will mean Aegon becomes the UK's largest platform provider, with more than three million customers.
L&G only bought the business in early 2013, snapping up a 75 per cent stake for £131m, but confirmed this morning that it hoped to have fully disposed of it by December this year, just three and a half years later.
Mark Gregory, L&G group chief financial officer 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.”
Aegon chief executive Alex Wynaendts added: "The acquisition of Cofunds is a unique opportunity to further accelerate the execution of our UK strategy. It enables us to create substantial value as the number one provider in the fast-growing UK platform market."