Pensions and investments group IFG is to acquire British pensions company James Hay Holdings from Santander Private Banking in a £35 million (€38.5 million) cash deal.

Dublin-quoted IFG will raise approximately €50 million through a share placing to finance the deal.

James Hay is Britain’s largest provider of Self Invested Personal Pensions (SIPPs) with more than £8 billion in assets under management. In a statement it said the deal would be earnings enhancing and would add scale to both its pensions administration and advisory businesses.