LONDON (dpa-AFX) - Jupiter Fund Management PLC (JUP.L) Thursday said it has agreed to acquire CCLA Investment Management Limited for 100 million pounds.
The acquisition is expected to add to the company's management fee earnings immediately. It sees initial run-rate cost synergies of at least 16 million pounds per annum, to be achieved by the end of 2027.
Jupiter noted that the terms of the deal include downside protection through a purchase price adjustment mechanism linked to changes in CCLA's run-rate revenues between signing and completion, which is expected before the end of the year.
'This Acquisition helps us to increase scale in our home market of the UK, where Jupiter is already a leading player, without any disruption to our existing clients. It opens up a new client segment for us, broadening our appeal to a range of charitable and religious institutions, both in the UK and internationally, while also allowing us to expand our existing presence in the UK Local Authority sector. Importantly, Jupiter and CCLA share a common set of values, and each has a client-centric culture and history of focusing on active and differentiated investment solutions,' said Matthew Beesley, Chief Executive Officer of Jupiter.
Additionally, the company has updated its capital allocation policy. On top of the ordinary dividend, which is set at 50% of pre-performance fee earnings, the company also intends to return 50% of performance fee-related revenue generated in fiscal 2025 in the form of either, or both of, a special dividend or an additional share buyback programme.
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