Pension and insurance mutual Royal London has sold its Ascentric platform to M&G for an undisclosed sum following an overhaul by the new chief executive Barry O'Dwyer.
Ascentric, which has £14 billion of assets and 90,000 customers, was bought by Royal London in 2007 and is used by IFAs to manage client money.
M&G, spun off from the Pru last year, has £352 billion of assets under management and the deal will only marginally increase that sum.
Royal London chief Barry O'Dwyer came in last year and undertook a strategic review of the group.
He said the company was still committed to the adviser market.
"As part of our strategic review of the business, we explored a number of options for Ascentric.
"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."
M&G chief John Foley said: "This deal strengthens our position in the UK savings and investment market, complementing our existing offering to advisers and customers with a well-established digital wealth management platform.
"Ascentric'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.
Fenchurch advised Royal London on the sale.
It needs regulatory approval.
