U.K. money manager Liontrust Asset Management agreed to acquire Majedie Asset Management in an £80 million ($107 million) deal, a spokeswoman for Liontrust confirmed.
Terms of the deal, which is set to close in April, also include a further up to £40 million payment upon completion, dependent on Majedie's closing net asset value.
The acquisition will boost Liontrust's existing institutional offering with Majedie's assets under management and administration of £5.8 billion, as well as enabling Liontrust to increase its scale, distribution and client base. Liontrust, which is primarily focused on retail clients, had £36.5 billion in assets under management and administration as of Nov. 26.
The deal is adding new U.K., U.S. and global equity portfolios to Liontrust's existing equity offering, as well as 15 segregated accounts with £2 billion in combined assets under management and administration.
"Majedie is an important acquisition for Liontrust because of its strong presence and reputation in the institutional market. Liontrust has been increasing our number of institutional clients and the purchase of Majedie will hasten this expansion by enhancing our investment capability and client service credentials," John Ions, CEO of Liontrust, said in a news release Tuesday.
"Given the growing demand from institutional investors for global equity managers, we believe we can expand this client base further for the Majedie investment team, as well as take advantage of Majedie's institutional expertise," he added.
Rob Harris, CEO of Majedie, added in the release that the acquisition by Liontrust provides a "compelling strategic and cultural fit."
"Our strength in the institutional market, combined with Liontrust's impressive sales and marketing capabilities, will enhance distribution for our investment team and offer a resilient, long-term proposition for our clients. Together, we will offer a fully resourced, best-of-breed fund management capability which is true to our heritage and ready to embrace the future with its myriad challenges and opportunities," he added.
Mr. Harris will become Liontrust's head of global institutional business upon completion of the deal.
Majedie's team will be renamed the Liontrust global fundamental team. James de Uphaugh, Majedie's CIO and chairman, will continue to lead the team's investments.
