Liontrust Asset Management (LSE:LIO) PLC has agreed to buy rival Majedie Asset Management for up to £120mln.
Majedie’s assets under management and advice were £5.8bn at the end of November, compared to Liontrust’s £35.7bn.
Liontrust highlighted that Majedie has a “long-term pedigree in institutional fund management”, an area where it has been looking to expand.
Majedie chief executive Rob Harris will join as head of global institutional business, it added, with all of the investment team members joining Liontrust as the ‘Global Fundamental Team’, headed by Majedie’s chief investment officer and chairman James de Uphaugh.
Liontrust said it expects the acquisition to boost diluted earnings per share from the financial year ending 31 March 2023, as duplicated back-office activities are removed.
Liontrust chief executive John Ions said: "Majedie is an important acquisition for Liontrust because of its strong presence and reputation in the institutional market. Liontrust has been increasing our number of institutional clients and the purchase of Majedie will hasten this expansion by enhancing our investment capability and client service credentials."
Majedie's Harris said Liontrust was "a compelling strategic and cultural fit, with a deeply ingrained focus by both firms on rigorous investment processes, a commitment to responsible capitalism and first-class client service".