Business
Acquisition
Acquisition.
About this update from Jupiter Fund Management Plc
[{"type":"text","content":"\n \nRNS Number : 1791D Jupiter Fund Management PLC 17 February 2020 \n\n17 February 2020\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO, OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\nFOR IMMEDIATE RELEASE\nJupiter Fund Management plc\nProposed acquisition of Merian Global Investors Limited\n \nFurther to the announcement on 15 February 2020 in response to press speculation, the board of Jupiter Fund Management plc (the \"Jupiter Board\") is pleased to announce the proposed acquisition of Merian Global Investors Limited (\"Merian\"), an independent active asset management firm with more than £22 billion assets under management[1] (\"AUM\") (the \"Acquisition\"). \n \n1. Summary\nThe Acquisition represents an opportunity to accelerate Jupiter's strategy and is expected to deliver the following key benefits:\n\nEnhances Jupiter's position as one of the UK's leading active asset managers with more than £65 billion of AUM.\nComplementary and additive acquisition aligned with Jupiter's high conviction active approach and investment culture.\nReinforces Jupiter's core UK franchise and extends capabilities into attractive product gaps.\nDiversifies Jupiter's existing business with the current top 5 funds falling from 46 per cent. of AUM to 33 per cent. of the AUM of the Enlarged Group; number of funds with greater than £1 billion of AUM increasing from 10 to 16; and top 4 capabilities moving from 76 per cent. of AUM to 53 per cent.\nMigration of Merian's investment team and assets onto Jupiter's operational platform through the execution of a clear and well-designed integration plan.\nSubstantial cost efficiencies expected to deliver low to mid-teen accretion to Underlying EPS from 2021 and increasing from 2022 onwards[2].\nThe Acquisition is consistent with Jupiter's strategic priorities and accelerates its growth plans.\nCompletion of the Acquisition is subject to the satisfaction of customary conditions including regulatory consents and Jupiter shareholder approval.\n\n \n \n2. Transaction highlights\n \n§ Jupiter is to acquire the entire issued share capital of Merian for an upfront equity consideration of £370 million to be paid th...