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Aberdeen set to pay £55.4m for Parmenion as platform 'exceeds expectations'

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Aberdeen set to pay £55.4m for Parmenion as platform 'exceeds expectations'

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03 May 2017

Aberdeen Asset Management expects the total price of buying Parmenion to rise to £55.4 million after the platform 'exceeded expectations'.

In a half-year report published today, Aberdeen said it has increased the expected add-on costs by £5.4 million since last September.

This means total add-on payments for the platform will hit £15.7 million. Aberdeen paid an initial cash fee of £39.7 million to buy Parmenion in 2016, meaning in total Aberdeen expects to pay £55.4 million.

This total could rise by up to £1.1 million depending on Parmenion's business performance to 31 December 2017.In the six months to 31 March 2017 Parmenion recorded net inflows of £500 million, taking its total assets under management to £3.3 billion.

Over that period, Aberdeen made a pre-tax profit of £115 million, compared to £98.8 million in the same period last year.

Martin Gilbert, chief executive of Aberdeen, said the Parmenion acquisition had helped the company's overall performance.

'We have experienced net inflows into our emerging market strategies in recent months and encouragingly into our diversified growth strategies and the Parmenion platform during the period. These together with favourable market conditions and the delivery of £70 million of cost savings have resulted in a healthy rise in revenues and profits,' he said.

Aberdeen will merge with Standard Life later this year.

This article originally appeared on Citywire, written by Charles Walmsley 02 May, 2017