Momentum Global Investment Management will buy Seneca Investment Managers, creating a money management firm with about £4.7 billion ($6.1 billion) in assets under management.
The deal, which is subject to U.K. regulatory approvals, will bring together the two multiasset managers. Financial details remain confidential, a spokeswoman for MGIM said.
Ferdi van Heerden, CEO of MGIM, will lead the combined business, the spokeswoman said. David Thomas, CEO of Seneca, will step down as an executive but stay on as a non-executive director of the business. There will be a three-month transition period for the handover of Seneca to Mr. van Heerden, the spokeswoman added.
The combined firm will maintain presence in London and Liverpool, England — MGIM and Seneca's respective headquarters — and no layoffs are expected as a result of the transaction, a news release said.
"The two teams complement each other well and have a strong cultural fit," Mr. van Heerden said. "The acquisition will enable MGIM to meet the growing demand for multiasset investment solutions from advisers, discretionary fund managers and their clients."
MGIM has about £4 billion in assets under management and is a wholly owned subsidiary of South African insurance and investment firm Momentum Metropolitan Holdings. Seneca has more than £600 million in assets.
The deal is expected to close by the end of the year.