Rathbone Brothers PLC, the provider of investment & wealth management services, has agreed to buy up to 1.27 billion pounds in private client funds from Lloyds Banking Group for 35.4 million pounds.

Rathbone Brothers has also reached an exclusive distribution agreement with the Lloyds Banking Group.

Andy Pomfret, CEO of Rathbones, said that the acquisition was a striking opportunity to increase company's funds under management.

Under the deal, assets from the Bank of Scotland Portfolio Management Service and Lloyds TSB Private Banking will be transferred to Rathbone Brothers.

Andy Pomfret expects that the total assets to be transferred will worth over 1 billion pounds.

Speaking on the issue, Andy Pomfret said, "If we don't get several hundred million then we'll be disappointed. It would be good to get north of 1 billion pounds." Lloyds said about 40 job-cuts could take place by the end of 2011 in its Edinburg offices.

It should be noted here that Lloyds has been divesting its non-core businesses. Only previous week it sold Halifax estate agencies chain, threatening the jobs of around 460 workers.

In the recent trading, shares in Rathbones gained 0.52 per cent to close at 960p-a-share.