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Jupiter Fund Management PLC said Monday that it has agreed to buy Merian Global Investors Ltd. in a deal that will create an asset manager with more than 65 billion pounds ($84.79 billion) in assets under management.
Jupiter JUP, +8.32% said it will acquire Merian for an upfront equity consideration of GBP370 million to be paid through the issue of 95.4 million new Jupiter shares to Merian shareholders, with an additional deferred earnout of up to GBP20 million payable to key Merian management shareholders. Merian will be acquired with target net debt of GBP29 million, assuming completion on July 1, the company said.
The acquisition reinforces Jupiter’s core U.K. franchise, extends its capabilities into attractive product gaps and diversifies its existing business, the company said. Jupiter also expects substantial cost efficiencies, which are forecast to boost underlying earnings per share from 2021, it said.
Jupiter said pretax profit for 2019 is expected to be GBP151 million, down from GBP179 million a year before, on net management fees that fell to GBP370 million from GBP396 million. Assets under management as of Dec. 31 stood at GBP42.8 billion, up from GBP42.7 million, it said.
