Shares in Jupiter Fund Management PLC (LSE:JUP) rose 12% after the company announced the £100 million acquisition of CCLA, a specialist asset manager serving the UK’s non-profit sector.
The deal, which will be funded entirely from Jupiter’s existing cash, is expected to be “materially accretive” to earnings once completed, with at least £16 million in annual cost savings forecast by 2027.
CCLA manages over £15.1 billion for charities, religious groups and local authorities, and has delivered net inflows to long-term funds every year for the past 15 years. In the year to March 2025, it reported revenue of £66 million and operating profit just under £13 million.
Jupiter also pledged to return 50% of its 2025 performance fees through dividends or buybacks.
Chief executive Matthew Beesley said the CCLA brand will be retained, calling the deal an opportunity to grow scale in the UK while broadening Jupiter’s reach into a new segment of long-term clients.
Peel Hunt said the deal was a "sensible use of excess capital, while the increased dividend should be well-received".
The shares rose 12.8p to 121.2p.