Aberdeen Asset Management has bought Glasgow Investment Managers for £8.95m, with the investment team led by Iain Lynn joining the Aberdeen Group.
Aberdeen has acquired Sutherland Holdings, which holds 50.1 per cent interest in Glasgow Investment Managers, and will buy the remaining 49.9 per cent of the company from Shires Income.
In a statement to the stockmarket last week, Aberdeen said that it would pay £6.25m plus the value of net tangible assets which is estimated at £2.7m.
Glasgow Investment Managers manages three investment trusts – Glasgow Income Trust, Shires Income and Shires Smaller Companies, as well as funds on behalf of a number of institutional clients. Total assets under management at the end of July 2007 were around £429m.
Aberdeen chief executive Martin Gilbert says: “We are delighted that Iain Lynn and his team have agreed to join Aberdeen. They have demonstrated good performance over a long period, they manage well established funds and they have a very strong relationship with their clients.
“We have a long established strategy of using selective acquisitions to complement our rapid organic growth and these trusts represent an exciting addition to the range of investment companies under our management.
“The acquisition of Glasgow will strengthen our UK equity capabilities and enhance Aberdeen’s position as a leading manager of closed-end funds.”