Man Group Plc (EMG.L, MNGPY.PK, MNGPF.PK) said it has agreed to acquire the entire issued share capital of FRM Holdings Ltd., a global hedge fund research and investment specialist with funds under management of approximately $8.0 billion.
As part of the acquisition, Man will integrate FRM with its multi-manager business and through combined resources and scale, will aim to offer clients deeper and more diverse capabilities, increasingly compelling products and services and better investment performance.
Man noted that no consideration will be paid up front, with contingent consideration dependent on asset retention. The contingent consideration to be paid over three years comprises - i) a maximum of $82.8 million in cash, net of total net assets acquired (subject to post-closing balance sheet adjustments) and dependent on asset retention ii) a 47.5% share of performance fees attributable to FRM's existing funds under management over three years, subject to a cap.
The acquisition is expected to be completed before the end of third quarter of 2012.
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