Australian wealth managerIOOF Holdings is to buySkandia Australia andIntech Investments from UK-listedOld Mutual Group.

The total purchase price for the acquisition will be approximately A$34 million (about $22 million) comprising an upfront payment of $20 million on completion and a further payment to be made approximately 60 days after completion. Completion is scheduled to occur on or around 6 March 2009.

The Skandia platform business and the Intech implemented consulting business - with a combined funds under management and administration over $8 billion – will be integrated into the IOOF business.

The deal was done with the support ofAustralian Wealth Management, who are in the process of merging with IOOF and will provide a component of the funding via a $10 million loan.

The acquisition strengthens IOOF’s position in the platform and investment research markets and will complement the proposed merger between IOOF and Australian Wealth Management. Following this acquisition but prior to the proposed AWM merger, the IOOF group will service about $32 billion in FUMA with more than 300,000 clients.

Tony Robinson, chief executive of IOOF Holdings, said: “This acquisition provides IOOF with an excellent opportunity to increase its scale in the platform business and will enable us to operate more competitively in the marketplace. Scale is important due to increased margin pressure both from competition and the impact of the global market decline. It will also enable the business to increase its sales and distribution reach, which should allow us to drive up combined net fund flows and further strengthen relationships with key non-aligned dealer groups. Importantly, it also provides an opportunity to deliver a broader range of products and services and achieve greater cost efficiencies which will benefit all advisors, clients, customers and shareholders.”

The IOOF brand will replace the Skandia brand in due course as it has been retained by the Old Mutual Group for use outside

Australia. The Intech brand will be retained.

Chris Kelaher, managing director of AWM, who will become managing director of the merged IOOF and AWM business if the proposed merger is approved, expressed his support for the acquisition.