Man Group plc ("Man") is pleased to announce that it has reached agreement on the terms of the recommended acquisition by Man of GLG Partners, Inc ("GLG") (the "Acquisition")
The Acquisition values the fully diluted share capital of GLG at approximately USD1.6 billion(1) and creates a diversified, world-leading alternative investment manager with approximately USD63 billion of funds under management
The Man Board believes that the Acquisition provides compelling strategic and commercial benefits to Man Shareholders through:
- The combination of two established investment management businesses with complementary investment strategies and the integration of sales, structuring and operations between the firms
- A complementary geography of distribution franchises and investors, offering the opportunity to market products into new markets and to new investors
- The potential of the Enlarged Group to add significant incremental funds under management through combining GLG’s investment offering with Man’s structuring and distribution expertise
- The low correlation of performance between the quantitative investment style of Man and the discretionary investment style of GLG, providing greater stability in the combined performance fee prospects and the creation of new high margin products for distribution
- The expansion of open-ended product offerings in onshore markets in single manager and combination formats to broaden and facilitate the raising of new assets in those markets
- The subsequent organic build out of discretionary investment strategies by the combined business
- A combined product offering, with an emphasis on liquid strategies, well positioned to benefit from the expected continued growth in onshore products globally
Man has identified annual potential cost savings of approximately USD50 million with one third expected to be achieved in the financial year ending in 2011 and the balance expected in the first six months of the financial year ending in 2012
The Acquisition is expected to be earnings accretive in the financial year ending in 2012 and earnings neutral in the financial year ending in 2011
As at 31 March 2010, GLG had funds under management of approximately USD23.7 billion. GLG generated non-GAAP adjusted net income of approximately USD81 million for the year ended 31 December 2009
GLG has a long history of strong and sustained investment performance – since its first fund was launched in 1997, GLG has achieved a 14.1 per cent. annualised return on its alternative strategies and a 7.3 per cent. annualised return on its long only strategies, outperforming its blended benchmark by 2.7 per cent. annually.
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