UK-based Legal & General Group has agreed to acquire the business of US-based Global Index Advisors (GIA) for US$50.4 million.
The transaction, which is subject to fund shareholder approval, is expected to complete by mid 2014.
The acquisition is expected to provide Legal & General with scale and distribution in the US$6 trillion US defined contribution ("DC") market, where TDF assets are forecast to double by 2017.
Additionally, this acquisition will allow Legal & General Investment Management (LGIM) to grow assets in the DC market in the UK and in the US.
Mark Zinkula, CEO of LGIM, said: "International expansion and the DC market are two extremely important drivers of future growth for LGIM, and the acquisition of Global Index Advisors today will allow us to accelerate our expansion in the US DC market."
Wadham Downing, M&A director of Legal & General said: "We are delighted to announce our first US acquisition and our first in the asset management theme. GIA brings a new dimension to LGIMA and our US DC proposition. With today’s announcement on GIA, we have now agreed five bolt-on acquisitions in the last 12 months."