Legal & General is buying Suffolk Life for £62m in a bid to increase its share of the self-invested personal pension market to 10 per cent.
The company will pay £15.75 per share for Suffolk Life.
L&G chief executive Tim Breedon says he wants to focus on the savings part of the business in 2008 and increase its pension business in the mass affluent market. The deal means that L&G will offer both a trust-based Sipp and an insured Sipp.
Suffolk Life said in Nov-ember that it would be undertaking a strategic review advised by Fenchurch Advisory Partners. It said it would look at acquisition offers from third parties as well as options under the existing ownership structure.
Suffolk Life will retain its brand and continue to be based in Ipswich. There will be no redundancies but Suffolk Life says potential board changes have not yet been determined.
Suffolk Life sales and marketing director John Moret says: “It remains very much business as usual. L&G has made it clear it wants the business to become a centre of excellence in Sipps. It will bring us potentially greater distribution. We expect the deal to be completed by the end of April or early May.”