Lloyds will become a 10% shareholder in Aberdeen as a result of the £660mln all-share deal, which includes £100mln deferred consideration.
The deal increases Aberdeen’s funds under management to £350bn, though does not include the core life and pensions business of Scottish Widows.
Aberdeen added the deal would boost annual revenues of £234mln and “materially enhance” earnings in the first full financial year after completion.
Martin Gilbert, Aberdeen’s chief executive, said the deal would strengthen its investment capabilities, add new distribution channels and scale to the Aberdeen business across a range of asset classes while also setting up a strategic relationship with Lloyds Banking.
Aberdeen reported underlying profits rose by 39% to £483mln in the year to September, with the annual dividend also increased by 39% to 16p.