Legal & General’s move to put Cofunds up for sale was sparked by a decision to replatform its technology to Bravura, Money Marketing understands.
L&G has sent an information memorandum to potential buyers two years after acquiring the platform.
Cofunds is currently powered by IFDS and has been considering its options ahead of IFDS’ contract ending in 2017. It is understood Bravura’s new Sonata system had been selected to replace IFDS, but the costs associated with the move prompted L&G to begin the sale process.
The project to replatform Cofunds to Bravura is expected to cost tens of millions of pounds.
A source with knowledge of the sale says: “The best technology fit was decided to be Bravura’s Sonata system. But total implementation was very expensive, which is what has driven the sale.
“Whether Cofunds will end up moving to Bravura if it is sold rem-ains to be seen. It depends who it is sold to. If it is another platform that would be a migration exercise, so the technology upgrade would not be necessary.”
A senior source at a major platform says: “L&G’s problem is that it failed to recognise Cofunds’ technology was out of date when it bought the business.”
Cofunds, L&G and Bravura declined to comment.