1st Oct 2014 17:45
LONDON (Alliance News) - Asset manager Henderson Group PLC Wednesday said it has made an initial payment of about USD120.0 million, USD10.0 million less than it had originally set out, following the completion of its acquisition of Geneva Capital Management.
In June, Henderson had said it would pay USD130.0 million up-front for the US equity manager. At the time the deal was unveiled, Henderson had said that Geneva had USD6.3 billion of assets under management at the end of May 31. However, Henderson late Wednesday said that it acquired USD5.4 billion of assets under management under the deal.
It said that clients representing more than 90% of Geneva's assets under management consented to the deal.
Under the terms of the deal revealed on June 30, Henderson will make deferred paymentd of up to USD45.0 million, payable over five years from closing, if revenue retention targets are met. The deal also includes the potential for earn-out of up to USD25.0 million, also payable over five years, if Geneva achieves stretch targets in relation to revenue growth.
Henderson made the acquisition in an effort to beef up its presence in North America and bring in institutional distribution capabilities to complement its retail franchise.
Henderson shares Wednesday closed down 1.2% at 200.40 pence.
By Samuel Agini; [email protected]; @samuelagini
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