Legal & General Group (L&G) has agreed to offload Cofunds, its investment platform in the UK for advisers and other financial institutions, to Dutch insurer Aegon in a £140m deal.
The deal will include the sale of the Investor Portfolio Service (IPS) platform along with Cofunds' retail and institutional business.
All employees in Cofunds and IPS will join Aegon as part of the deal.
L&G expects the sale to boost its Solvency II surplus by £125m, which was £5.3bn at the end of 30 June 2016. It also expects the sale to raise its economic capital surplus by £105m.
The deal, which is subject to regulatory nod, is expected to close by end of December this year.
L&G group CFO Mark Gregory said: "Cofunds is at the point where it requires a significant upgrade in technology to exploit its leadership position in the UK platform market. We have concluded that this long term commitment is best achieved under Aegon's ownership as a specialist wealth platform provider."