The transaction is expected to close Oct. 1. Henderson will pay an initial $130 million for the firm, then up to $45 million payable over five years after closing if revenue retention targets are met. An additional $25 million consideration will be paid over five years after closing if Geneva achieves growth targets.
Geneva has $6.3 billion in assets under management in small- and midcap U.S. growth equities. Following the acquisition, Henderson's North American business will have about $18.3 billion of AUM. Henderson's U.S. institutional AUM will quadruple to around $8 billion.
There will be no substantial changes to Geneva's management structure. The top executives will report to Jim O'Brien, managing director North America of Henderson, on day-to-day operations, with the investment team reporting to Graham Kitchen, head of equities.
As Henderson integrates the business, Henderson will initially co-brand with Geneva to provide continuity to Geneva's existing clients. No immediate reductions or additions to staff are expected.