FTSE 250-listed asset manager Jupiter has acquired the London-based charity asset manager CCLA for £100m, in a deal that will be funded entirely from existing balance sheet cash resources.
CCLA is the UK’s largest asset manager focused on serving non-profit organisations, managing more than £15 billion in assets under management on behalf of charities, religious institutions and local authorities.
Jupiter, which has AUM of £44bn, said it would preserve the CCLA brand after the deal completes.
In a statement, Jupiter said that the acquisition marked “a significant step forward in delivering on Jupiter’s key strategic objective of increasing scale, specifically within its home market of the UK.
“It also opens up a new client channel and provides complementary investment expertise with a high degree of cultural alignment.”
“The acquisition is expected to be materially accretive to management fee earnings per Jupiter share from day one, with further accretion over time as synergies are delivered. The initial target for run-rate cost synergies on a fully integrated basis is at least £16 million per annum and this target is expected to be fully realised by the end of 2027.”
The statement added that the deal would help deliver Jupiter’s medium-term target cost income ratio of 70%.
Matthew Beesley, Chief Executive Officer of Jupiter, said: “CCLA is the leading asset manager in the UK for the non-profit sector, providing exemplary client service and high-quality investment outcomes for charities, religious organisations and local authorities, and we are delighted that they will become part of Jupiter.”
The deal, which will lead to total AUM of £59bn, is expected to complete by the end of the year, subject to regulatory approvals.
