Swiss money manger GAM has agreed to acquire Cambridge-based multi-strategy systematic manager Cantab Capital Partners.
Cantab, which manages $4bn in assets, has been purchased for an upfront cash payment of $217m and deferred consideration based on future management fee revenues. The cash payment has been financed by GAM’s existing cash resources.
As part of the deal, Cantab partners will retain a 40% interest in future performance fees, and also be able to re-invest most of net sales proceeds into Cantab’s funds for a multi-year period.
"Acquisition of Cantab expected to be significantly accretive to GAM’s underlying earnings per share in the first full year of ownership," GAM said in a statement.
The transaction is expected to be completed in the second half of 2016.
In addition, GAM has launched a new investment platform known as GAM Systematic.
The new platform will focus on systematic products and solutions across liquid alternatives and long-only traditional asset classes such as equities, debt and multi asset. At the same time, the platform will also be the company’s innovation hub for the development of new technologies and investment ideas for systematic strategies and products.
GAM group CEO Alexander Friedman said: "We have been evaluating how best to enter the systematic space for the past 18 months because we believe it represents an important capability for an active investment firm in the current environment and in the decades to come.
"GAM Systematic will offer our clients a compelling range of unique products complementary to our strong discretionary product range at a time when the investment industry is challenged to provide cost-efficient, liquid and diversified sources of returns."