"The decision to acquire Threadneedle is part of our overall strategy to expand our financial services business globally," said Jim Cracchiolo, American Express group president, global financial services and chairmand and CEO of American Express Financial Advisors. Threadneedle has $75 billion in assets under management.
As only $4.5 billion of American Express total $230 billion in assets are European-based, this deal greatly boosts the companys presence in Europe, Reuters reports.
"We are investing in this downturn in order to grow the asset management businesses, whereas a number of our competitors are either shedding people, shedding operations, consolidating or downsizing," Ted Truscott, chief investment officer of American Express Financial Advisors, told Reuters. "Its a great time to buy an asset manager. Valuations have come down a bit from the bubble years."
