Lloyds Bank is in talks over a £400m deal to acquire retirement products provider Embark in what would be its biggest acquisition since it returned to private ownership four years ago.

The lender is close to finalising a deal and an announcement could come as early as this month, Sky News reported.

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Embark, which was founded in 2012 by former Barclays executive Phil Smith, describes itself as the UK’s fastest growing digital retirement group.

It has more than £38bn under administration and close to 500,000 customers across the country.

It has grown through a string of major acquisitions, including a deal to snap up Zurich’s investment and retail platform last year.

If confirmed, the deal will be one of Lloyds’ most significant deals since it was bailed out by UK taxpayers during the financial crisis in 2008.

It would also mark a major payday for Embark’s shareholders, including some of the world’s largest asset managers such as Blackrock, Franklin Templeton and Legg Mason.

Embark operates under brands including The Adviser Centre, Rowanmoor and Vested. It also provides white-label services for companies such as Bestinvest, Charles Stanley, Coutts and Moneyfarm.

The company employs more than 600 people across the UK, with offices in cities including London, Edinburgh and Leeds.

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The deal would continue Lloyds’ efforts to diversify its income by moving into areas such as wealth management and insurance.

It comes just days after Antonio Horta-Osorio stepped down as Lloyds chief executive following more than a decade at the helm. Former HSBC executive Charlie Nunn will take over in August.