Aberdeen Asset Management Announces U.S. And European Acquisitions
PHILADELPHIA, Feb. 14, 2013
PHILADELPHIA, 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
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:
oadds 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;
oadds established global high yield and U.S. total return offerings to
Aberdeen which will complement Aberdeen's existing fixed income expertise;
oprovides 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
othe 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.
Commenting on the Artio Transaction, Martin Gilbert, Chief Executive of
Aberdeen Asset Management, said:
"This transaction is in line with Aberdeen's strategy of undertaking infill
acquisitions that will assist with growing our business organically. It will
be of benefit to our North American business, a region we view as a key growth
market for Aberdeen. The integration of Artio's operations will strengthen
further our U.S. fixed income expertise, in particular the addition of U.S.
global high yield and total return products, and will help to broaden and
deepen our distribution network in the U.S."
Aberdeen is also pleased to announce today that is it has agreed to acquire a
50.1% stake in SVG Advisers (SVGA), a wholly owned subsidiary of SVG Capital
plc (SVGC), an international private equity investor and fund management
business listed on the London Stock Exchange. This business will be combined
with Aberdeen's existing private equity capability to create a substantial
private equity fund of funds business. There is no direct impact on Aberdeen's
J.P. Morgan Limited (which conducts its UK Investment Banking activities as
J.P. Morgan Cazenove) is acting as financial adviser and corporate broker to
Aberdeen in connection with the Transaction, and Willkie Farr & Gallagher LLP
is acting as Aberdeen's U.S. legal advisor.
About Aberdeen Asset Management
Aberdeen is an asset management company managing $314 billion of third party
assets from our offices around the world, as of December 31, 2012. Our clients
access our investment expertise drawn from three main asset classes: equities,
fixed income and property, as well as tailored solutions. We package our
skills in the form of segregated and pooled products across borders. We invest
worldwide and follow a predominantly long-only approach, based on
fundamentally sound investments.
Further information about Aberdeen can be found at www.aberdeen-asset.us
SOURCE Aberdeen Asset Management PLC
Contact: Katie Cowley (U.S.), email@example.com, Aberdeen Asset
Management, +1-215-405-2423, or James Thorneley (UK),
firstname.lastname@example.org, Aberdeen Asset Management, 020 7463 6323
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