Summary
Affiliated Managers Group, Inc. (AMG) announced on April 19, 2005, a significant acquisition of First Asset Management Inc. (First Asset) for approximately $250 million. This transaction is particularly noteworthy as a portion of the consideration, around $26 million, will be settled with shares of AMG's common stock, issued under an exemption from registration requirements. The acquisition is expected to close in early Q3 2005, subject to regulatory approvals and other closing conditions. The acquisition of First Asset will expand AMG's reach into the Canadian market by adding six independent, mid-sized asset management firms. These firms collectively manage approximately $23 billion across a diverse range of investment products, serving both institutional and high-net-worth clients. This strategic move is poised to broaden AMG's asset base and product offerings, enhancing its position as a diversified asset management holding company.
Key Highlights
- 1AMG to acquire First Asset Management Inc. for approximately $250 million.
- 2Approximately $26 million of the acquisition consideration will be paid in AMG common stock.
- 3The issuance of AMG stock is exempt from registration requirements under Section 4(2) of the Securities Act of 1933.
- 4Transaction is expected to close in early Q3 2005, subject to customary closing conditions.
- 5Acquisition adds six Canadian asset management firms to AMG's portfolio.
- 6The acquired firms collectively manage approximately $23 billion in assets under management.
- 7The transaction expands AMG's presence in the Canadian market and diversifies its investment product offerings.