Henderson Global Investors is set to acquire US equities asset manager Geneva Capital Management for up to $200m (£117m).
Henderson is acquiring the firm, which has $6.3bn assets under management, to strengthen its North American presence and launch US equity retail products.
Wisconsin-based GCM specialises in mid- and small-cap equity growth strategies and is employee-owned by a team of 25 people.
Henderson will pay an initial upfront consideration of $130m, split into three tranches, followed by a deferred consideration of up to $45m to be paid out over five years if revenue retention targets are met.
There will be a final earn-out of up to $25m payable over five years if GCM achieves targets in relation to revenue growth.
This transaction will be fully funded from Henderson’s existing cash resources, with transaction and integration costs expected to be around $10m.
Henderson chief executive Andrew Formica says: “Developing our presence in North America is a strategic priority for Henderson. The acquisition of Geneva is a major step towards achieving our growth ambitions as a global asset manager.”
Philippa Gee Wealth Management managing director Philippa Gee says: “The margins in the UK are getting so tight that companies are having look at expanding and taking over companies to make extra margins.
“Also, we are starved of good US fund managers – with many people having to go for passives instead – so this could be a good move for Henderson.”