AssetCo Acquires Saracen Fund Managers In £2.75m Deal
Investment firm AssetCo has reached an agreement to acquire Saracen Fund Managers for £2.75m, the firm's first 100% acquisition.
AssetCo said on Friday that the consideration would be satisfied by the issue of 166,904 new ordinary shares of 10.0p each and £664,774 in cash, both set to be paid on completion. Admission of the consideration shares to trading on AIM was expected to occur by the end of September.
The AIM-listed group's acquisition comes three months after snapping up a 5.9% strategic stake in River & Mercantile, citing "significant opportunities" to enhance the distribution and appeal of Saracen's existing funds and to "widen the funds offered by Saracen". The acquisition will also provide AssetCo with the opportunity to purchase an FCA-regulated entity and the associated authorisations.
Chairman Peter McKellar said: "Saracen is a small fund management firm with great potential. Its business model, people and product offering are its key assets and are an ideal fit for AssetCo. I'm looking forward to working with Graham and the team. Our focus will be on building on Saracen's strong foundations, particularly the experience and expertise of its management team and their investment approach.
"We aim to grow the business through marketing its existing funds and over time broadening its product range to continue to meet the needs of customers."