Lloyds to acquire investment and retirement platform business

Subject to regulatory approvals, the acquisition is expected to complete in Q4 2021

Lloyds

Lloyds to acquire investment and retirement platform business. Source: shutterstock.com

Lloyds Banking Group intends to acquire the Embark Group, an investment and retirement platform business.

According to the press release, Embark enhances the Group’s capabilities to address the attractive mass market and self-directed Wealth segment, completing its Wealth proposition.

Besides, Embark will enable the Group to re-platform its pensions and retirement proposition, delivering a platform for intermediaries and significantly strengthening its offering in Retirement, an important growth market.

The acquisition will see Lloyds acquire £35 billion of assets under administration on behalf of 410,000 consumer clients.

Through a combination of the Group’s new capabilities and its multi-brand, multi-channel distribution model across more than 25 million customers, the Group expects this acquisition to deliver attractive growth and returns over time and create value for shareholders.

A consideration of £390 million will be paid for the entire share capital of Embark upon completion. The transaction is expected to have a 30 basis points impact on Group CET1 capital and deliver a mid-teens return on invested capital in the medium term, both including all integration and restructuring costs.

There’s an ever-growing customer demand for clear, simple and affordable financial planning and retirement products and services. Our acquisition of Embark will not only help us serve all of a customer’s financial needs in one place, but also sit alongside our existing partnerships which meet the more complex financial planning and investment requirements of mass-affluent and high net-worth customers through Schroders Personal Wealth and Cazenove Capital
Antonio Lorenzo, Chief Executive, Scottish Widows and Group Director, Insurance & Wealth, Lloyds Banking Group

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