Canadian investment firm Fiera Capital has swooped on emerging markets boutique Charlemagne Capital.
Fiera, which controls some C$109 billion, has agreed to a 14p per share deal for Charlemagne, valuing the business at around £40.7 million.
The offer represents a 16.7% premium to Charlemagne’s closing share price of 12p on 29 September.
The directors of Charlemagne have unanimously backed the offer.
The news was accompanied with an interim update from Charlemagne, which showed assets under management rose by 9.9% in the six months to June to $2.1 billion.
‘The acquisition of Charlemagne Capital would be an important step in advancing our global presence by teaming up with a high quality emerging and frontier markets specialist, with an excellent track record of performance, a proven team of investment professionals and a strong culturally aligned management team, Fiera CEO Jean-Guy Desjardins told the market.
‘The addition of emerging and frontier markets strategies to our strong global offering in equities would benefit our clients who are consistently looking for diversification opportunities.’
Charlemagne CEO Jayne Sutcliffe added: ‘Fiera Capital is a performance driven, client-focused firm with a strong emphasis on teamwork. As such, Fiera Capital has committed to preserve and support the culture and infrastructure of Charlemagne Capital.
'Our board believes that this transaction is an excellent solution for our broad range of institutional and wealth management investors, who will benefit from being part of Fiera Capital with its complementary culture, financial strength and North American distribution network.’’