Aegon has sold advice arm Positive Solutions to Intrinsic Financial Services Limited for an undisclosed sum.
Aegon said the deal comes as part of its refocus towards platform provision post-Retail Distribution Review.
Once the deal receives approval from the regulator, Intrinsic will become the shareholder of Positive Solutions while Aegon will acquire an equity stake in Intrinsic.
The Positive Solutions brand and senior management team will remain in place after the deal closes, which is expected in the third quarter of this year.
With the addition of approximately 850 PosSol advisers, the number of advisers under the Intrinsic umbrella is set to surpass 3,000.
Adrian Grace, chief executive officer of Aegon UK, said: “Until now we have seen [Positive Solutions] as core to our strategy.
“However in a post-RDR world we intend to focus on our... platform, which is gaining traction at a remarkable rate, and on advancing digital solutions to better meet the savings and retirement needs of our customers in the workplace and those individuals approaching retirement.”
The Background
The Intrinsic network is based in Swindon, with offices in Westminster, Moorgate and Chesterfield.
PosSol has historically been associated with the north of England, with its head office in Newcastle.
Peter Coleman was brought into Positive Solutions firstly as commercial director in 2011 and then became chief executive in early 2012 during a troubled time for the firm.
It reported £10m worth of cumulative losses over a three year period and lost £360,000 in 2011.
However, Positive Solutions posted £2.3m pre-tax profits for 2012. Before the results were published in March, the firm indicated it would look to widen its network arm, already trialled with 25 advisers, and aim to incorporate up to 100 more advisers.
In May, Intrinsic Financial Services reported strong Ebitda profits of £5.2m and significant growth in adviser headcount, turnover and funds under management for 2012.
Its 2012 profit was 63 per cent higher than the 2011 figure of £3.2m. Turnover increased from £98m to £121m, and funds under management in the Group’s Cirilium funds increased by 23 per cent to stand at £870m.
