Firm's Second Major Acquisition in a Week
The deal is the second acquisition closed by Eaton Vance since last week when the company said it had acquired 80% of New Jersey-based Fox Asset Management for an initial payment of $32 million in cash and Eaton Vance stock on July 26.
Both Fox and Atlanta Capital have strong separate accounts businesses, part of the reason Eaton Vance was attracted to the firms.
Eaton Vance will retain the option of purchasing the remaining 30% of Atlanta Capital in two stages, in 2007 and in 2009.
Until then Atlanta Capital executives will hold the remaining 20% of Atlanta Capital equity. The company will become a subsidiary of Eaton Vance and will operate as a distinct business unit. The deal is expected to close October 31.
Both deals bring Eaton Vance's total assets under management to $58 billion, an increase of 16%, according to a statement issued by the company.