L&G snaps up Cofunds for £131m

INSURER Legal & General said this morning said it would acquire the remaining 75 per cent of platform Cofunds it does not already own, in a deal worth £131m.

The deal, which values Cofunds at £175m, is subject to regulatory approval and will be funded by L&G’s cash reserves.

The acquisition will provide L&G with a footprint in the investment platform market, where assets under administration are due to double by 2017, it said.

Founded in 2001, Cofunds has more than £50bn in assets under administration and a 22 per cent share of the UK investment platform market, L&G said.

The deal is expected to complete in the first half of this year, and add to the insurer’s earnings by the end of 2014.