Jupiter nears deal to buy asset manager Merian
Jupiter Fund Management is close to buying Merian Global Investors from private equity firm TA Associates, in a deal that would create a merged company with £67bn of assets under management.
The company said that “discussions have been underway for some time”, adding that both parties are “confident that the combination would have the potential to deliver meaningful benefits for the stakeholders of both businesses”.
However it warned that discussions were ongoing and would not definitely lead to a deal.
The deal, which could see Merian’s owners pocket between £400m to £500m in cash and shares, could be completed as early as tomorrow, the Sunday Times reported.
TA Associates bought Merian for £600m in December 2017.
In a statement Jupiter said: “The board of Jupiter sees this as an attractive opportunity to acquire a high quality independent active manager that would represent a strong fit with Jupiter in both investment management philosophy and culture.”
The potential deal would be Jupiter’s first acquisition since the arrival of former Janus Henderson boss Andrew Formica as its new chief executive in March last year.
In his previous role, Formica oversaw the take over of New Star and Gartmore, and its merger with Janus.
The asset management industry has seen a spike in consolidation activity recently, with the merger of Standard Life and Aberdeen in 2019, and Liontrust’s acquisition of Neptune in October.
Analysts at Canaccord Genuity said “Key for Jupiter shareholders will be what cost synergies can be extracted…It is clear that M&A remains a necessity in the asset manager world, facing the challenges of net outflows, falling revenue margins and rising costs.”