Specialist fund manager Liontrust has agreed to snap up the Architas UK investment business for a maximum consideration of £75m ($93.8m).
Under the agreement, Liontrust will buy Architas Multi-Manager (AMML) and Architas Advisory Services (AASL) – from AXA.
The entity resulting from the consolidation of the two businesses will be a multi-asset multi-manager business.
The deal covers the Architas Multi-Asset (MA) Active, Blended and Passive Multi-Manager fund ranges, as well as the Specialist and Income funds, which will bring £5.6bn in assets under management and advice (AuMA).
These funds will adopt the Liontrust brand post deal completion, which is subject to regulatory and shareholder nod.
The combined group will have £6.6bn in AuMA. Liontrust’s AuMA will increase to £25bn upon deal closing that is anticipated before year-end.
Liontrust CEO John Ions calls the takeover a “strategic acquisition”.
“Buying the Architas UK investment business will expand our distribution among financial advisers through the scale of the combined businesses, the strength of the merged investment team, the broad range of multi-asset multi-manager portfolios and funds and enhanced client service,” Ions stated.
As part of the deal, Sheldon Macdonald-led Architas UK fund management team will integrate with the Liontrust Multi-Asset Investment Team.
Liontrust’s John Husselbee will be in charge of the combined Liontrust Multi-Asset team while Architas’ Sheldon Macdonald will serve as its deputy head.
Liontrust will also absorb Architas’ UK distribution team.
Launched in 1995, Liontrust had £19.4bn in AuMA as at 19 June 2020.
In 2019, Liontrust acquired Neptune Investment Management in a deal worth up to £40m.