The integration of IFDS admin, processing and technology is due to start in 2016.
Skandia's telephone and email contact teams will remain in-house but new technology will be brought in to improve efficiencies.
Paul Feeney, chief executive of parent company Old Mutual Wealth, said: "This relationship represents and investment in our business that will enable us to efficiently continue to improve the service and products we offer to financial advisers and their clients.
"We will be able to respond to adviser and customer needs faster than we can today and deliver additional functionality and greater flexibility to advisers via the UK platform."
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Skandia's parent company Old Mutual Wealth announced a pre-tax profit of £108m for the first half of 2013. This is a 14 per cent increase from £95m a year ago.
Gross inflows were £6.7bn, up £26 per cent from £5.4bn a year ago, and funds under management were £75.2bn.
The Skandia UK platform had a strong second quarter following a slow start following RDR-implementation. Sales in the second quarter exceeded the first quarter by 40 per cent.
Mr Feeney said: "The UK platform had a slow start to the year as we implemented significant changes to accommodate the RDR but it was pleasing to see a significant pick up during the second quarter which has led to growth in both sales and profit for the first half of the year overall."

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