Waystone acquires Link Fund Solutions

Waystone has signed definitive agreements to acquire Link Fund Solutions (LFS), dependent on regulatory approvals and other contractual conditions.

Link Group has also confirmed a conditional agreement has been reached for the sale of the LFS business to Waystone, excluding its Luxembourg and Swiss entities, and Woodford-related liabilities.

The deal forms part of LFS’s obligation to pay out up to approximately £235m in compensation to cover losses to more than 300,000 Woodford investors, following an investigation by the FCA.

LFS will receive a “material contribution” from Australian parent Link Group to finance the cost of the compensation, subject to completing the sale of LFS to Waystone.

The deal will generate £110-140m in sale proceeds, representing fair value of the assets, according to statements from the FCA and Link Group.

Link Group will receive no net proceeds from the sale.

The acquisition was previously rocked by delays, with Link Group citing diligence as a reason.

Exclusive negotiations by Waystone began earlier this year regarding the acquisition.