Staff at Bath-based financial services firm Ascentric have been told it is entering a new expansion phase after its sale to insurance giant M&G.
The firm, a wholly owned subsidiary of pension and insurance mutual Royal London since 2014, is a leading developer of digital wraps and wealth management platforms – online services that allow financial advisers to manage their clients’ investment portfolios. 
It has grown rapidly over recent years and now has assets under administration of £14bn, around 1,500 adviser relationships and more than 90,000 underlying customers.
At the same time merger and acquisitions activity in the platforms market has also expanded as financial services firms increasingly seek efficiencies.
The sale follows a ‘re-platforming’ – switching from the use of one platform to another – by Ascentric last year as well as a comprehensive strategic review led by Royal London’s CEO Barry O’Dwyer.
Royal London entered preliminary talks on the sale of the firm in February.
Following the sale to M&G Mr O’Dwyer said: “The business has been performing well following its re-platforming and we sought an outcome that would take it to its next phase of growth.
“We believe that a sale to M&G delivers this for Ascentric and I am pleased to have found a buyer who has a strong commitment to Ascentric’s client and customer base and who is looking to further grow the business.” 
Ascentric CEO Rob Regan, pictured, added: “It is very clear that M&G is aligned with our values and ethos and represents a good home for our advisers, strategic partners and staff.
“M&G is well-placed to take us on the next stage of our journey, leveraging its scale to grow the business. We look forward to working with M&G to support our clients and customers going forward as well as through the transition from Royal London's ownership.”
The move is M&G’s first in the platform market. It gives the firm the capability to offer third-party discretionary fund management services along with a single platform for individual savings accounts, self-invested personal pensions and general investment accounts. 
M&G chief executive John Foley said the deal strengthened its position in the UK savings and investment market as it “complemented” its existing offering to advisers and customers with a “well-established digital wealth management platform”.
He added: “Asentric’s platform will also accelerate our ability to provide a wider range of M&G and Prudential investment solutions to more customers, through the tax wrappers and service propositions they favour. Advisers will also benefit as we invest to grow the platform.”
The deal, financial details of which have not been disclosed, is subject to regulatory approval.
