Following completion of the transaction, Standard Life expects to return £1.75bn of the proceeds (equivalent to 73 pence per share) of capital to shareholders.
The sale comprises Standard Life's Canadian long term savings and retirement, individual
and group insurance and investment management businesses.
Standard Life Investments has also entered into a new global collaboration agreement with
Manulife who will distribute Standard Life Investments' funds in Canada, the US and Asia. This move is expected to treble Standard Life Investments' assets under management distributed by Manulife within three years (H1 2014: £3.3bn.
Following completion of the sale, Standard Life Investments' Boston office will become a hub for its North American business, and a new office in Toronto will continue serving Standard Life Investments' institutional clients locally.
The transaction is expected to complete in the first half of 2015 and is conditional on
approval from Standard Life shareholders and the Canadian regulatory authorities.
Keith Skeoch, chief executive of Standard Life Investments, said: "The sale will create new opportunities at Standard Life Investments, as we enter into a Global Collaboration Agreement with Manulife, who intend to distribute our funds into Canada, the United States and Asia's retail markets.
"We will reciprocate by distributing their funds into the UK retail market."
"The collaboration is a natural extension of our existing strategy where we have established a
range of global strategic partnerships and relationships."
Standard Life Investments has assets under management of £195.1bn as of June 2014.