Aberdeen Asset Management is to acquire American asset management holding company Artio Global Investors Inc.
The group said the takeover would help it expand its North American business and deepen its distribution network in the region.
Martin Gilbert, chief executive of Aberdeen Asset Management, said: “This transaction is in line with Aberdeen’s strategy of undertaking infill acquisitions that will assist with growing our business organically.
“It will be of benefit to our North American business, a region we view as a key growth market for Aberdeen.
“The integration of Artio’s operations will strengthen further our US fixed-income expertise, in particular the addition of US total return and global high-yield products, and will help to broaden and deepen our distribution network in the US.”
The purchase consideration of approximately £112 million represents a premium of £22m over Artio’s unaudited net asset value at December 31 last year.
Artio is debt-free and has net asset value of £90m and cash and seed investments of £87m.
The deal is expected to close by the end of the second, or early in the third, quarter of this year, and is subject to customary conditions including approval by a majority of Artio Global shareholders.
Artio’s assets under management include mutual fund assets of £4.6 billion.
AAM said its new acquisition comprises a £6.3bn fixed-income business with top quartile performance across a range of strategies, and a £2.9bn international and global equities business.
The latter will be transitioned to Aberdeen’s top-performing global equity process post-completion. The deal is expected to be earnings enhancing from its outset.
Last full-year results showed AAM revenues rose by 11% to £869.2m during the year to the end of September, driven by greater demand for high-margin funds, with a 15% hike in underlying pre-tax profits to £347.8m. Total assets under management hit £187.2bn.
Shares rose 2.5% on news of the acquisition yesterday, climbing 10.4p to 426.4p.