River Global PLC shares jumped 30% to 4.37p on Monday after Liontrust Asset Management (LSE:LIO) agreed to acquire its asset management business in an all-share deal worth up to £9.7 million. Liontrust rose 5% to 257.5p.
The transaction will add £2.7 billion in assets under management to Liontrust's existing £21.7 billion, taking the combined group's pro forma total to £24.4 billion.
Liontrust is acquiring River Global Holdings Limited, which was formed by bringing together River & Mercantile Asset Management, SVM Asset Management and Saracen Fund Managers, and specialises in long-only equity strategies across UK, Indian and global markets.
The consideration comprises £7.6 million in new Liontrust shares, plus a contingent payment of up to £2.1 million in shares tied to the conversion of the European Opportunities Trust mandate into an open-ended fund.
Martin Gilbert, executive chairman of River Global, will join the Liontrust board as a non-executive director on completion.
The deal excludes River Global's stake in the Parmenion fund platform.
Completion is subject to regulatory approvals and a vote by River Global shareholders, and is expected by 31 August 2026.
Liontrust said the acquisition is expected to be earnings accretive in the financial year ending March 2027, and materially accretive in subsequent years.