Leading UK hedge fund Man Group will acquire rival GLG Partners in a $1.6-billion cash and stock deal, which stands to create an investment-managing entity with funds under management worth $63 billion.
The deal, subject to various approvals including regulatory ones, is expected to close by the end of September this year.
"The acquisition values the fully-diluted share capital of GLG at approximately $1.6 billion and creates a leading global alternative investment manager with about $63 billion of funds under management," Man Group said in a statement today.
Following the deal, GLG public stockholders would get $4.50 in cash for each share of common stock. The amount would be a premium of about 55 per cent over GLG's closing price on May 14.
As on March 31, GLG had funds under management worth $23.7 billion. Man Group noted that it has identified annual potential cost savings of about $50 million.
"The combination will provide comprehensive and compelling investment solutions to our investors worldwide..." Man Group's CEO Peter Clarke said.
"Man's quantitative and multi-manager expertise complements GLG's long track record in discretionary investment strategies, and both firms focus on liquid, transparent and dynamic trading," he added.