Henderson Global Investors has entered an agreement to acquire the entire issued share capital of Geneva Capital Management.
The move to acquire Geneva is part of Henderson’s strategy to develop in the US markets and to globalise its business.
With $6.3 billion in assets under management (AUM), Geneva will quadruple Henderson’s US institutional AUM. The transaction will take place in four stages with the up front consideration estimated at $130 million.
Andrew Formica, chief executive of Henderson, said developing presence in the US is a “strategic priority for Henderson” and is a “major step” towards achieving growth ambitions as a global asset manager.
He added: “It will increase our assets under management in the US by over 50 percent, add investment management expertise in US equities and extend our US institutional client base.”
“We look forward to working with the Geneva team, to ensure that all of our clients benefit from our new partnership. Henderson clients will gain access to Geneva’s strong track record in identifying high quality growth companies in US equities, while Geneva clients will continue to benefit from a stable team and an unchanged investment process, now backed by a global pure play asset manager.”
Amy Croen, co-founder and managing principal of Geneva, said: “The team at Geneva is excited to join Henderson. With the backing of a strong international partner who is very supportive of our existing investment strategy and platform, we look forward to taking our business to the next stage of its development.”
“On behalf of our clients, we will continue to apply the same consistent investment approach and process that have generated strong risk-adjusted returns since our foundation in 1987.”
The transaction is expected to close on 1 October 2014.
