Australia’s Macquarie Asset Management has entered into a binding agreement to acquire AMP’s global equities and fixed income (GEFI) division.
AMP Capital’s business includes fixed income, Australian listed equities, listed real estate and listed infrastructure.
Macquarie will pay up to A$185m (£100m, $138m, €117m), of which up to A$110m will be in cash and a cash earn-out of A$75m payable after the second anniversary of the completion date, subject to meeting revenue targets.
Following the completion of the deal, Macquarie intends to acquire assets and teams focused on global equities and fixed income clients as well as expand investment capabilities in Australia and other international markets.
The transaction is expected to finalise in the first quarter of 2022, depending on customary closing conditions.
AMP Capital manages around A$60bn in assets for AMP Australia as well as external institutional, retail and direct clients.
Expansion
Ben Way, head of Macquarie Asset Management, said: “This transaction represent another opportunity, following our recent acquisition of Waddell & Reed, to add scale and expand our public investment capabilities.
“It cements Macquarie’s position as the leading investment manager in Australia by AuM, and provides new clients joining us from AMP Capital with access to Macquarie’s diversified investment offerings and global platform. Clients will be at the centre of our considerations as we work closely with AMP on a successful integration.”
James Georgeson, acting chief executive of AMP, added: “In bringing together two well-known Australian investment businesses with strong track records, we’re pleased to deliver such a positive outcome for our clients, our GEFI teams and AMP shareholders.
“Our review of the GEFI business last year showed it had strong capabilities and performance but needed greater scale to compete effectively. Macquarie is a high quality and respected manager, with a complementary culture and capabilities, well-placed to develop the business and deliver continued strong investment performance for its expanded client base.
“We are committed to working with Macquarie to integrate and transition our clients and teams, and to exploring new partnership opportunities to enhance the products and services we both provide to our clients.”
Failed talks
AMP has been trying to sell AMP Capital for a while after US investment management firm Ares Management offered to buy the entire group for A$6.4bn in October 2020.
It then withdrew its offer in February 2021 and was only interested in acquiring AMP Capital.
M&A talks fell through in April 2021, prompting AMP to pursue a demerger of the private markets investment management division.
