The sale, which includes the Investor Portfolio Service platform and Cofunds’ retail and institutional business, was first announced in August and was given final approval on Tuesday.
It marks the third transaction between the firms following Legal & General’s acquisition of Aegon’s £2.9bn back book annuity portfolio and the five year distribution agreement to provide individual annuities to Aegon pension customers.
Adrian Grace, Aegon chief executive, said the completion of the new deal marked the “start of a new era” as the company moved from a traditional life company to a platform business.
He said: “Our focus now is to help intermediaries grow their business, grow their profitability and manage their risk and costs effectively.”
A board of more than 20 firms representing intermediaries have been appointed to a board to help guide Aegon’s development of the platform.
At a December meeting the board heard Aegon will opt to upgrade the technology used rather than build a new platform in order to make quicker improvements and it will also ensure all user log-ins remain the same.
Grace added: “By discussing our approach and progress with intermediaries from the outset we aim to deliver a platform that they feel invested in for the benefit of their business and their clients. While we recognise we have a big task at hand which needs to be handled with care, it represents a fantastic opportunity to work with intermediaries to shape the future of the platform industry.”
In the second half of 2017, Aegon said current Cofunds users will have access to a wider product range including exchange traded funds, investment trusts, shares and an integrated pensions.
Aegon users will also be able to use more Cofunds features such as pre-funding of trades, debit card use and a better investment selection process.
Cofunds will continue to be led by David Hobbs and be run from its headquarters in Witham, Essex.
