Lloyds has begun a 12-month project to migrate IT systems belonging to Scottish Widows Investment Partnership, following its sale to Aberdeen Asset Management.
The £660 million deal, announced on Monday, is part of Lloyds' plans to downsize its business in line with demands from regulators. The acquisition is expected to conclude in March 2014, and efforts are now underway to integrate SWIP's operations with fund manager Aberdeen.
"The acquired business is largely standalone without significant dependencies on Lloyds. The intention is to migrate the acquired business onto Aberdeen's platform in a controlled manner,” Aberdeen said in a statement.
The project will involve two steps. The first will cover the separation of SWIP from the rest of Lloyds, including IT, management and other functions, and will take 12 months.
This will be supported by a ‘transitional services agreement’ which will see Lloyds provide IT support to Aberdeen.
The second step, running in parallel with the first phase, will involve integrating SWIP's systems with Aberdeen's business, and is expected to take two years to complete.
There is also a one-off cost related to the migration and integration, with IT one component of an estimated £50 million outlay.
Lloyds, which is 33 percent owned by the government, is currently in the process of selling off parts of its business to fill a £8.6 billion capital shortfall. The bank recently launched TSB as a separate business, but will continue to provide IT support until at least 2016.