Legal & General Group has concluded the acquisition of US-based Global Index Advisors (GIA) following receipt of fund shareholder approval from the US$16.0 billion Wells Fargo Advantage Dow Jones Target Date Funds.
Legal & General said that it has also received approval to advise a further US$5.5 billion of GIA’s assets.
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The initial consideration of the transaction was US$30.75 million with deferred consideration of US$1.5 million payable over the period of two years from the date of completion and further payments of up to a maximum of US$18.15 million payable over three years from the date of completion.
Legal & General Investment Management CEO Mark Zinkula said that the company is delighted with completion of the purchase and welcomes Jim Lauder and his team to LGIM.
"This transaction now means LGIMA’s proforma assets exceed $60bn, placing us in an excellent position to grow our DC assets in the US market and accelerating LGIM’s already strong international growth," added Zinkula.
GIA was formed in 1994 to create and market index target date fund products in the US and is now a top 5 provider of these funds in the US. The target date fund market in the US is expected to double by 2017.
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