The Blackstone Group has agreed to purchase Lombard International Assurance from Friends Life for an initial consideration of £317 million ($542 million). The deal price includes £254 million ($435 million) upfront and an estimated £7 million ($12 million) interest equivalent, both to be paid in cash upon completion, as well as a £56 million ($96 million) deferred payment in the form of a vendor loan note. Based on Lombard's future AUM, the loan note could increase or decrease by up to £39 million ($67 million).
Lombard offers unit-linked life assurance, providing wealth planning to high and ultra-high net worth individuals. It employs over 350 at its head office, with teams of consultants spread across 14 markets. It had been on the auction block for a while; other PE firms reported to be vying for bids were Warburg Pincus and Permira.