Norwegian pension fund and savings manager Storebrand will acquire Norwegian asset manager SKAGEN, said a news release on Storebrand's website.
The transaction, which includes an initial payment of 1.6 billion Norwegian kroner ($203 million), is expected to close before the end of the year. Strong performance by SKAGEN could result in additional earnings for shareholders.
"We already have a good position in the overall savings and pension market, and this will make us the second-largest player in a market with strong growth," said Odd Arild Grefstad, Storebrand's CEO, in the release.
Following the transaction, Storebrand's share of Norway's 221 billion kroner private fund savings market in mutual funds will increase to 17% from 4%, Storebrand spokesman Jan Otto Risebrobakken said.
SKAGEN has about 80 billion kroner in total assets under management, and Storebrand more than 580 billion kroner.
SKAGEN will operate separately within Storebrand, with Oyvind Schanke continuing on as SKAGEN's CEO, Mr. Risebrobakken said. Mr. Grefstad will chair the SKAGEN board.
SKAGEN has a number of institutional clients and distributors outside of Norway, such as in Sweden.