Posted inBusiness moves

Aussie investment firm sold to rival group for A$2.5bn

They will merge to create a ‘global leader in multi-boutique asset management’.
Kangaroo crossing dirt road in Western Australia.

Fund management firm Perpetual has acquired Australia-based investment advice business Pendal Group.

The deal values each Pendal share at A$6.54 – up from the A$6.23 which Perpetual had proposed in its original bid in April 2022 which was rejected. The total sum of the deal will be A$2.51bn ($1.73bn).

In an Australian Stock Exchange filing, Perpetual revealed plans to merge with Pendal post-acquisition to create a “global leader in multi-boutique asset management”. Once combined, the group will have more than A$210bn in assets under management.

Pendal shareholders will receive one Perpetual share for every 7.5 Pendal shares plus A$1.976 cash per Pendal share, the fund group said. The acquisition is expected to finalise between Q4 2022 and Q1 2023.

Tony D’Aloisio, chairman of Perpetual and who will be chairman of the combined group, said: “Our board and management see this as a defining acquisition that brings together two of Australia’s oldest and most respected active asset management brands to create a diversified global asset management business of substantial scale.

“We believe the combination represents a strategically and financially compelling opportunity for both sets of shareholders, with our respective strategic ambitions realised significantly sooner than would otherwise occur.

“Rob Adams, chief executive and managing director of Perpetual, will lead the combined group and up to three directors of Pendal will be invited to join the Perpetual board.”

This article was first published on our sister publication, International Adviser.

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