"This acquisition represents a major step toward our goal of becoming one of the leading global asset managers," Arthur Trueger, executive chairman of Govett, said.
Govett will be paying $230m in convertible preference shares, or $13 per Duff and Phelps common share. Govett will also gain a 49 per cent stake in Beutel, Goodman and Company, a Canadian investment management company with some C$10bn under management.
The acquisition propels Govett into the top leagues in the US and the UK, blending Duff and Phelps's experience as an important fixed-income house with extensive research facilities with Govett's high-performing specialty equity market skills. The two sides are seen as largely complementary, minimising rationalisation costs. The purchase should now give Govett the clout to win big management mandates from corporations and institutions in the US.Reuse content