Aegon has agreed to acquire BlackRock’s UK defined contribution platform and administration business to strengthen its position in the UK workplace savings market.

Aegon said it will acquire £12 billion of assets and 350,000 customers, creating a £30 billion platform-based workplace savings business

Adrian Grace, CEO of Edinburgh-based Aegon UK, said: “The combined strength and breadth of expertise makes us a compelling choice.

“With employers demanding additional solutions to meet employees’ needs to and through retirement, workplace savings are no longer just about traditional DC pensions.

“This makes it an exciting market and with an expectation it will triple in size over the next 10 years. We are well positioned to take advantage.”

Aegon said the deal deepens its relationship with BlackRock, “who will continue to be a key partner providing investment management for Aegon clients.”

Grace added: “The workplace savings market is expected to triple in size over the next 10 years. Aegon is well positioned to take advantage of this growth.”

BlackRock retains its role as the primary investment manager for the clients who will transfer to Aegon as part of the transaction.

Paul Bucksey from BlackRock will be appointed managing director of the combined workplace business.