Legal & General is set to acquire Cofunds following months of negotiation between the businesses, Money Marketing understands.
L&G currently holds a 25 per cent stake in the platform business while International Financial Data Services, Threadneedle, Newhouse Capital Partners and Jupiter all have significant stakes.
In November 2011 it was reported that L&G was preparing a £200m bid for Cofunds but it is understood that a deal is now close to being reached.
It is thought that Cofunds senior management would continue steer the platform under L&G’s ownership.
Cofunds sales and marketing director Alastair Conway last week announced he was to leave the business in April after five years with the platform. His responsibilities will be split internally with Verona Smith becoming director of marketing and Andy Coleman becoming director of investor and wealth distribution. Both will report to Cofunds chief executive Martin Davis.
Earlier this month, Money Marketing revealed L&G managing director of platforms and distribution Geoff Towers had changed roles to become managing director of UK and international savings. The move saw L&G’s platform and distribution division fall under the firm’s retail savings division.
In March 2011, L&G ditched its exclusivity deal with Cofunds for the distribution of its bond and pension wrappers, which had been in place since 2005.
The Platforum managing director Holly Mackay says: “Cofunds has expanded away from being a pure IFA business to support both direct and institutional plays as well. As such it feels sensible that it can add more value to a large group looking for an ‘engine’ and a diversification of revenues than it can to disparate fund manager shareholders with varying agendas.”
Cofunds is currently the largest platform in the UK with £45bn assets under administration, as of 30 September 2012.
L&G and Cofunds declined to comment.