By Tom Wilson
LONDON (Reuters) - British asset manager Liontrust (LON:LIO) Asset Management plc has conditionally agreed to acquire GAM Holding AG in a deal that values the Swiss asset manager at CHF 107 million ($121.3 million), the companies said on Thursday.
The transaction, which is expected to complete in the final quarter, will create a global asset manager with 53 billion pounds ($66.7 billion) in assets under management and advice.
GAM said in a statement that its board had recommended the transaction earlier on Thursday. Clients would benefit from access to a broader range of strategies, services and stability that the financial strength of the combined firm would bring.
The proposed deal comes amid jitters in the financial sector centred on U.S. regional banks, whose shares have tumbled despite regulators' efforts to end a crisis that started with the collapse of Silicon Valley Bank and Signature Bank in March.
Liontrust will offer 0.0589 ordinary shares of Liontrust for one GAM share, Liontrust said.
The British firm will issue 9.4 million new shares, with GAM shareholders set to own around 12.6% of the combined company on completion of the deal.
Liontrust Chief Executive John Ions said the deal would accelerate "growth of Liontrust through enhancing our distribution globally, product capability and investment talent."
($1 = 0.8824 Swiss francs)
($1 = 0.7947 pounds)