Love seems to be in the air on this Valentine’s Day; love in the form of the attractive acquisition by Aberdeen Asset Management that is.
Today, Artio Global Investors, the indirect holding company for Artio Global Asset Management, a business that helped to manage $14.3 billion in institutional and intermediary clients at the end of 2012, reported that it has agreed to plans for a merger with U.K.-based Aberdeen.
According to Aberdeen, Artio’s will purchase the New York-based publicly traded company for approximately $175 million or £112 million, which is set to be payable from cash resources with the firm. This translates to about $2.75 per share.
Artio was trading at $2.71 this morning, according to the New York Stock Exchange. Its 52-week high was recorded at $5.26 last February. In Aberdeen’s announcement, it lists that “Artio is debt-free.”
According to Artio, shareholders that represent 45% of the company are on board and “will vote in favor of the transaction.” These include GAM Holding AG, Richard Pell and Rudolph-Riad Younes.
Previously, in October 2012, Pell disclosed that he would step down as chairman and CEO, according to IMMP sister publication Money Management Executive. President and Chief Operating Officer Tony Williams replaced Pell, who returned his focus to money management in international equity strategies with Younes, co-manager and head of international equity.
At the time, it was said that Pell would also oversee Artio's equity and fixed-income strategies.
On Thursday, Williams said that Artio’s “…High Grade and Global High Yield teams will form a core part of Aberdeen’s fixed income capabilities, enhanced by the depth of its resources.”
“We will continue to manage our International Equity and Global Equity strategies until the anticipated closing date, at which time Aberdeen will assume investment management responsibilities for them, subject to client consent,” Williams said.
In Aberdeen’s prepared commentary, the firm lists that this acquisition will help to expand its North American business.
Martin Gilbert, Chief Executive of Aberdeen Asset Management, said this morning that the “integration of Artio’s operations will strengthen further our U.S. fixed income expertise, in particular the addition of U.S. total return and global high yield products, and will help to broaden and deepen our distribution network in the U.S.”
“This transaction is in line with Aberdeen’s strategy of undertaking infill acquisitions that will assist with growing our business organically,” Gilbert explained.
Additionally, Aberdeen took another step at growing by agreeing to grab a 50.1% stake in SVG Advisers, an international private equity investor and fund manager, for about £17.5 million or $27.1 million.
“This business will be combined with Aberdeen’s existing private equity capability to create a substantial private equity fund of funds business with almost £5 billion in assets under management,” the London-based firm listed in the press release.