Legal and General has reached a £140m deal to sell its investment platform Cofunds to Aegon

Mark Sands
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L&G has finally completed the long-rumoured disposal of the investment platform. (Source: Getty)

Legal and General has reached a £140m deal to sell its investment platform, Cofunds, to Aegon.

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.”

Read More: Why Legal & General's share price is down when its profits are up

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."