UK asset manager Liontrust has announced plans to acquire Swiss global investment firm GAM Holding in a £96 million deal, creating a group with £53 billion in assets under management.
The deal ends several weeks of discussions and is expected to be completed during the fourth quarter of the year.
The deal valued at CHF107 million (£96 million) and will be financed through a public exchange of 9.4 million new Liontrust shares, which will give GAM shareholders a 12.6% stake in the combined group.
The acquisition of GAM will add to Liontrust’s fixed income capabilities, including asset-backed securities, emerging market debt, catastrophe bonds and insurance-linked securities, and in global and thematic equities.
As well as broadening its fund range and asset class offering, the acquisition of GAM will expand Liontrust’s distribution globally with greater exposure to continental Europe where 62% of GAM’s assets are sourced.
Following the completion of the deal, all GAM funds will be rebranded under the Liontrust name.
John Ions, chief executive of Liontrust, said: “This is a significant acquisition that accelerates the growth of Liontrust through enhancing our distribution globally, product capability and investment talent.”
Peter Sanderson, chief executive of GAM, added: “Our distinctive approaches to investing and culture are closely aligned, and this combination represents the best opportunity for our talented team of professionals at GAM to continue to provide clients with high-conviction active investment strategies.
“The resulting business will have a strong balance sheet, a broader array of excellent investment products, and a global distribution footprint from which to deliver growth that our shareholders can participate in the future.”
Liontrust said the acquisition met all seven of its strategic objectives and was expected to be significantly earnings-enhancing following completion.
Separately, GAM has reached an agreement in principle to transfer all third-party fund management services clients serviced out of Luxembourg and Switzerland to a specialist asset servicing company active across Europe.
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