Eaton Vance, the Boston-based asset manager, has acquired Fox Asset Management in a $92m deal, subject to regulatory approval.
Under the terms of the deal, Eaton Vance will acquire an 80% stake in Fox for $92m. Eaton Vance will make three payments in total for the company, starting with a $32m cash and stock down payment, followed by two $30m payments in 2005 and 2006, contingent upon certain financial performance criteria.
Once the takeover is completed, Eaton Vance will see its assets under management rise by an extra $2bn to $52bn. Fox will become a subsidiary of Eaton Vance, functioning as a distinct business unit under its current management team. Fox's management will retain the remaining 20% of the company.
Eaton Vance claims Fox will retain control over its investment processes and management structure, and that the company will continue to be based in New Jersey. The Boston-based asset manager also said that the firm's marketing and client service teams would be combined.
Based in New Jersey, Fox is a value orientated investment management firm, focusing on separately managed accounts for institutions and broker / dealer consultant programs. The firm's clients include pension funds, public investment funds, Taft-Hartley funds, endowments and foundations. Fox is also an investment sub-advisor to several mutual funds.
By Geoffrey Ho
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