Standard Life Investments will pay £390 million for Ignis, including regulatory capital, according to a statement from the company. The consideration will be settled in cash from Standard Life Group’s existing internal resources.

Subject to regulatory approval, the transaction will see Phoenix and Standard Life Investments form a “strategic alliance”, with Standard Life Investments providing asset management services to Phoenix's life company subsidiaries.

The combined businesses will offer active management for institutional and wholesale clients, discretionary wealth management for high net worth private clients and outcome orientated products for maturing pension schemes and insurance companies, Standard Life stated.

Standard Life said the acquisition of Ignis enhances expertise and investment capability in areas such as government bonds and liquidity, while adding to its book of third-party business.

Standard Life Investments chief executive Keith Skeoch said the acquisition is “entirely complementary” and aims to strengthen the company’s strategic position. 

"Continuity of investment performance and commitment to client service and relationship management remain our key priorities, with migration and integration of Ignis taking place in a controlled manner under unified management from day one,” he said. 

Standard Life chief executive David Nish said the acquisition of Ignis will continue the delivery of their “group strategy” to grow assets under management and expand their offering to meet the changing needs of customers. 

“It will deliver enhanced earnings and cash generation and support future growth in revenues,” he added.

The transaction is expected to be completed by 30 June 2014, but is conditional upon approvals from the Financial Conduct Authority.