(Reuters) - Sun Life Financial Inc (SLF.TO) said on Wednesday it will buy an 80% stake in infrastructure and real estate investment manager InfraRed Capital Partners to expand its asset management unit.
InfraRed will become a part of SLC Management, the Canadian insurer’s alternative asset management business. Sun Life can buy the remaining stake five years from the close.
The terms of the deal include a closing payment of 300 million pounds ($384.90 million), with Sun Life agreeing to co-invest $400 million to support the launch of new InfraRed investment solutions.
The deal will further broaden SLC Management’s alternative solutions to now include infrastructure equity, said Steve Peacher, president of SLC Management.
The transaction is expected to close during the first half of 2020.
Reporting by C Nivedita in Bengaluru; Editing by Krishna Chandra Eluri