Aberdeen Asset Management has acquired Ivory & Sime Asset Management (ISAM) from Friends Ivory & Sime, in a deal worth £8.6m, subject to regulatory approval.
Under the terms of the deal, Aberdeen will make an initial £6.5m payment to Friends Ivory & Sime, plus an additional £2.1m, representing the value of ISAM's net assets. The Scottish fund manager will also make a deferred payment of £1m on the second anniversary of the takeover, if ISAM's assets under management are then greater than or equal to those at the completion date.
ISAM's investment team, led by John Walton, will also be transferring to Aberdeen once the deal is finalised. Walton's team of four will remain in London. For the latest financial year, ISAM reported after tax profits of £1.44m.
Speaking about the acquisition, Martin Gilbert, Aberdeen's chief executive, said: We are delighted that John Walton and his team have agreed to join Aberdeen Asset Management. They have demonstrated outstanding performance over a long period, manage well-established funds and have a strong relationship with their clients.
Currently, ISAM has £600m in assets under management. ISAM manages the quoted investment trust, the British Empire Securities and General Trust, and the Luxembourg domiciled SICAV, European Asset Value Fund. ISAM also manages funds on behalf of international institutional clients.
ISAM's acquisition is the latest this year in a string of takeovers by Aberdeen. In April, it acquired RREEF from Robeco Groep. Prior to that, Swedish property group Celexa was bought for £16.5m. Aberdeen also acquired Life Assurance Holding Corporation's (LAHC) asset management business in £86m share and loan notes deal.
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