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Feb. 14, 2013 /PRNewswire/ -- Aberdeen Asset Management PLC ("Aberdeen") announces that it has reached an agreement to acquire 100 percent of the share capital of Artio Global Investors Inc. ("Artio"), a publicly listed asset management company (the "Transaction").
The purchase consideration of approximately
$175 million is based on a price of
$2.75 per share and represents a premium of
$34 million over Artio's unaudited net asset value as of
Dec. 31, 2012. Artio is debt-free and had cash and seed investments of
$136 million on its balance sheet as of
Dec. 31, 2012. The purchase price will be payable in cash, financed out of Aberdeen's existing cash resources, on completion of the Transaction.
This acquisition will expand Aberdeen's North American business, deepen its distribution network in the region and add to its existing fixed income capabilities. The transaction is consistent with Aberdeen's stated strategy to identify suitable, quality businesses to complement the Group's organic growth.
Artio manages assets of approximately
$14.3 billion on behalf of a diversified retail and institutional client base. Based on Artio's fourth quarter results, annual run-rate revenues were approximately
$71 million, as of
Dec. 31, 2012. Artio's assets under management ("AuM") include mutual fund assets of
$7.2 billion. Artio comprises a
$9.8 billion fixed income business which has delivered top quartile performance across its range of strategies including highly rated Global High Yield and Total Return Bond products and a
$4.5 billion international and global equities business which will be transitioned to Aberdeen's top-performing global equity process post-completion. Artio's Global High Yield and High Grade teams are expected to join Aberdeen on completion of the Transaction.
The key benefits of the Transaction for Aberdeen are:
adds significant scale to existing U.S. fixed income business and complements organic efforts to expand distribution in the U.S., a priority growth market for Aberdeen;
adds established global high yield and U.S. total return offerings to Aberdeen which will complement Aberdeen's existing fixed income expertise;
provides access to Artio's distribution channels with a deeper penetration of the U.S. intermediary market, particularly the broker dealer & registered investment adviser segments which will also be of benefit to Aberdeen's existing product range; and
the Transaction is expected to be earnings enhancing from the outset.
The Transaction, which is currently expected to close by the end of the second quarter or early in the third quarter of 2013, is subject to customary closing conditions, including, U.S. antitrust approval, approval of a majority of Artio Global shareholders and approval of certain Artio Global mutual fund shareholders. As part of the Transaction, three of Artio's largest shareholders (representing approximately 45% of the total shareholding in aggregate) have entered into Voting Agreements providing that they will vote in favor of the Transaction.