Aberdeen Standard Investments and CYBG’s Virgin Money announced on Wednesday they have sealed a new investments and pensions joint venture.

The venture will build on Virgin Money’s retail investment proposition which has £3.7 billion under management.

Edinburgh-based Aberdeen Standard Investments manages roughly £555 billion of assets worldwide.

The deal includes a sale and purchase agreement (SPA) signed involving a conditional agreement for Aberdeen Standard Investments to acquire 50% (less one share) of Virgin Money Unit Trust Managers Limited for an upfront cash payment of at least £40 million.

The venture will offer investment products over time to CYBG’s six million customer base following its acquisition of Virgin Money.

The transaction is expected to complete in (calendar) Q2 2019, subject to regulatory approval.

David Duffy, CEO of CYBG, owner of Virgin Money, Clydesdale Bank and Yorkshire Bank, said: “We are delighted to take the next step forward in our partnership between Virgin Money and Aberdeen Standard Investments, enabling us to provide innovative and attractive investment solutions across the group’s six million customer base, through our national distribution.

“Using our brand and customer reach, combined with ASI’s clear asset management strengths we will be able to provide a truly compelling investment and pensions proposition to our retail customers.”

Martin Gilbert, Co-Chief Executive at Aberdeen Standard Investments, said: “The signing of the SPA that encompasses Virgin Money, Clydesdale Bank and Yorkshire Bank customers is an important milestone in progressing our joint venture with Virgin Money.

“The partnership offers a fantastic opportunity to develop a business that combines the best talents of Virgin Money and ASI.

“Most importantly, the joint venture will offer customers across the enlarged CYBG group, beyond Virgin Money’s existing customer base with investment solutions to help them achieve their long-term financial goals.”