The business has £6.1bn in assets under management and around 140 staff.

The sale is expected to complete in the second half of 2023, following satisfaction of certain conditions including receipt of customary regulatory approvals. 

The agreed purchase price to be paid at completion is £140m, subject to certain adjustments, principally reflecting activity in the period to completion.

Abrdn said it is selling the business because it feels it needs to build much greater to success in the longer term.

With its strategy for its personal vector focused on integrating the high-tech, high-touch model of interactive investor with financial planning, the company said it has concluded that another owner would be better placed to invest to deliver greater scale in the discretionary fund management business.

LGT Wealth Management chief executive Ben Snee said: "We see a strong strategic fit between Abrdn's DFM business and LGT. There is clear similarity in ethos and approach between the two businesses, with a genuine desire to provide first-class client solutions and passion for conviction-based investing.

"We very much look forward to welcoming our new colleagues to the team and are convinced that by combining our footprint and offerings, including Abrdn's proven experience in the charities sector, we're set to achieve further successful growth in the UK market."

Abrdn’s Managed Portfolio Service (MPS) business, will be carved out and retained prior to completion of the transaction because it “is better aligned to its group strategy.”

The company said MPS is “an important growth channel that aligns well to the way that the UK personal investment market is developing.”

The MPS team will be moved to sit within Abrdn’s adviser vector to maximise opportunities available through that business’ distribution model.

 Stephen Bird, Abrdn chief executive, said: “We are establishing one of the UK’s leading personal wealth businesses, and this deal represents an important step forward in our strategy to focus on our high-growth, platform-led, businesses.

“Our track record over the past two years shows that where we identify non-core capabilities, we will look to divest and redeploy capital in ways that better align with the interests of our investors, clients and customers.

“The decision to sell our DFM business underlines our commitment to that principle.”

The business being sold to LGT delivered around £40m in revenue in 2022, and currently serves around 4,000 clients.

Evercore acted as financial adviser to Abrdn in relation to the transaction.

The sale is expected to be completed in the second half of this year and will see LGT Wealth Management's assets under management swell from about £22bn to more than £28bn.

LGT Wealth Management was founded in 2008 as Vestra Wealth and acquired by LGT in 2016.