Abrdn has agreed to sell its discretionary fund management business to LGT for £140mln.
The sale involves the transfer of approximately £6.1bn in assets under management and approximately 140 employees.
Abrdn said that to succeed in the DFM market it would need to build a much greater scale but its focus is on integrating recent acquisition interactive investor.
The group’s Managed Portfolio Service business, which is currently part of the DFM business, is being retained said the wealth manager, as it is better aligned to the group strategy and is a part of the UK personal investment market operation.
Stephen Bird, abrdn chief executive, added: "We are establishing one of the UK's leading personal wealth businesses, and this deal represents an important step forward in our strategy to focus on our high-growth, platform-led, businesses.
Earlier this month, there were reports abrdn is also mulling the sale of its private equity arm for around £250mln.
LGT is a private banking and fund management group owned by the Liechtenstein royal family.
Prince Max von und zu Liechtenstein, LGT’s chairman, said: “The business’ strong investment performance and ESG strategy make it a perfect fit”.