IOOF has sold its Australian Executor Trustees (AET) corporate trust business while retaining the AET private trust business, as it moves further in the direction of being an advice-led organisation.
The buyer is financial services technology and infrastructure company Sargon Capital.
IOOF's Australian Executor Trustees (AET) corporate trust business is being sold for $51.6 million. The business contributed $1.1 million to IOOF's underlying NPAT in 2018.
IOOF managing director Christopher Kelaher said: "The provision of corporate trust services to the financial services industry is a specialist area that sits outside IOOF's advice-lead wealth management focus and is a stronger strategic fit with Sargon."
The AET private trust business, which IOOF is retaining, provides private client trustee services, estate planning and compensation trusts.
Sargon chief executive Phillip Kingston welcomed said there was a complementary fit between Sargon and AET Corporate Trust.
"During the past two years Sargon has made a number of strategic acquisitions to bolster our capability and scale in trustee and custodian services, to ultimately deliver the best possible outcomes for our clients," Kingston said.
"Each of the companies acquired by Sargon ultimately use our proprietary infrastructure and technology to deliver an intuitive, seamless and efficient experience for their clients.
"Through a powerful combination of technology and industry experts we're helping our clients navigate regulatory complexity, as well as mitigate security and compliance risks so they can focus on growth."
Sargon will pay 80% of the purchase price on completion, expected by October end.