LONDON (Reuters) - A unit of British insurer Legal & General (LGEN.L: Quote, Profile, Research) has agreed to buy a majority stake in Suffolk Life in an offer valuing the specialist pensions provider at 62 million pounds ($123 million), the two sides said on Thursday.

L&G, the third-largest UK insurer, said the recommended cash offer would see it take a 52.1 percent stake in Suffolk Life, or 1.72 million shares, offering 15.75 pounds for each share.

L&G said earlier this week it was considering bolt-on deals to boost its savings business, including self-invested personal pensions (SIPPs), platforms that allow customers to accumulate funds and draw an income in retirement.

Suffolk Life, a specialist SIPP provider, had established 10,000 SIPPs and managed gross assets of over 2.5 billion pounds at the end of August 2007.

"Growing our savings business is a strategic priority for Legal & General," L&G Chief Executive Tim Breedon said.

"Pensions and the mass affluent market are areas we have targeted for development. Suffolk Life enables us to accelerate our growth in these key expanding markets."

L&G were advised by Lazard while Fenchurch Advisory Partners were financial advisors to Suffolk Life.

(Reporting by Clara Ferreira-Marques; editing by Rory Channing)