Legal & General has acquired US investment business Global Index Advisors in a £30m deal.
In its first US acquisition, L&G Investment Management America has agreed a deal with the Atlanta-based firm that specialises in target-date funds.
The acquisition is expected to be completed by the middle of this year, subject to shareholder approval.
L&G will pay an initial £18.5m for Global Index Advisors, with a further deferred consideration of £900,000 to be paid over the next two years, followed by £11.1m over the following three years depending on performance.
The deal sees assets under administration at L&G Investment Management America exceed £30bn and gives the group access to the £3.6tn US defined contribution market.
Legal & General Investment Management America chief executive officer Mark Zinkula says international expansion and the DC market are “two extremely important drivers” for future growth at the group.
Thomas and Thomas Financial Services managing director Darren Lloyd Thomas says: “Western markets are definitely starting to froth up and we are seeing quite a few of these transatlantic deals.”