IOOF has reached an agreement with wealth management company Plan B to acquire the company at $0.60 in cash per share.
This is a premium of 33 per cent compared to the closing price of Plan B's shares at 12 July of $0.45.
The board of Plan B has supported the takeover.
"The board believes the takeover represents the best available value realisation opportunity for Plan B shareholders," the company said in a statement.
"At the same time, it will link Plan B to the stronger financial base of a much larger group, allowing the company to preserve and develop its unique relationship with its clients throughout Australia and New Zealand."
The offer price is subject to a dividend adjustment of 3 cents per share.
The price values Plan B at about $49.1 million.
The takeover of Plan B will add $2.2 billion to IOOF's fund under administration (FUA).
At 31 March this year, IOOF had $110.2 billion in funds under management, administration, advice and supervision.
The transaction includes a break fee of $400,000. payable by IOOF in certain circumstances.
The takeover offer is open for acceptance by Plan B shareholders until 11 September 2012, although IOOF can extend the period in accordance with the Corporations Act.
