A Dundee technology firm has been bought by Lloyds Banking Group for nearly £400 million.
Embark is one of the leading UK retirement solutions providers.
Lloyds will acquire Embark Group Limited and its subsidiary brands, for £390m.
The sale will allow Embark – which recently announced plans to grow its Dundee workforce – to continue its growth as a subsidiary of Lloyds Banking Group.
Lloyds will provide further investment and support to grow Embark further.
It has over £40.8 billion of assets on behalf of more than 425,000 clients.
It achieved this by attracting billions of inflows and through the acquisitions of Alliance Trust Savings, Zurich’s retail wealth platform.
Subject to regulatory approvals, the acquisition will be complete in the fourth quarter of 2021.
Jackie Leiper, managing director pensions, stockbroking and distribution at Scottish Widows, will become chief executive of Embark once the deal is complete.
Embark to continue growth
Embark Group chairman David Barral said: “In eight short years Embark has built one of the most respected and fastest growing digital retirement and savings businesses in the UK.
“The combination of Lloyd’s Banking Group’s financial strength and distribution reach, combined with the agility, digital capability, and expertise of Embark, will provide the perfect opportunity to create a market leading proposition for consumers, intermediaries, and strategic partners.
Scottish Widows chief executive and Lloyds Banking Group director Antonio Lorenzo said the acquisition would allow them to strengthen the retirement offering.
He said: “There’s an ever-growing customer demand for clear, simple and affordable financial planning and retirement products and services.
“Our acquisition of Embark will help us serve all of a customer’s financial needs in one place.
ANNOUNCEMENT: We’re pleased to announce the acquisition of @Embark_Group, a fast growing, investment and retirement platform business. Subject to regulatory approvals.
Read our statement: https://t.co/Yi5h4ovTnG
— Lloyds Banking Group (@LBGplc) July 29, 2021
“It will also sit alongside our existing partnerships which meet the more complex financial planning and investment requirements of mass-affluent and high net-worth customers.
“Through Embark’s technology, we will be able to increase the reach of our investment offerings for customers who are happy to manage their own portfolios.
“We’ll also be able to enhance our intermediary proposition, strengthen our offering in retirement.
“We can modernise the way Scottish Widows works with advisers, recognising the continued value of advice.”