Dual UK-Australian listed Henderson Group plc (ASX:HGG) has announced the acquisition of a rival fund manager, Gartmore Group, for around $530 million.
The purchase is expected to create one of the largest fund managers in the UK, with the purchase boosting Henderson's assets under management by 27 per cent to near $124 billion.
Both the boards of Henderson and Gartmore have unanimously recommended the deal that will offer Gartmore shareholders two Henderson shares for every three Gartmore shares they own.
Despite a troubled year for Gartmore, Henderson says its assets are performing well and integrating the business will enhance margins significantly.
In the year to 30 June 2010, Henderson Group reported a net profit of $58.24 million.
HGG Price at posting:
$2.15 Sentiment: None Disclosure: Held
