Australia-based asset management firm Perpetual has concluded a deal to buy its smaller peer Pendal Group for A$2.51bn ($1.7bn).

Closing of the deal, which was announced in August last year, sees the creation of a large multi-boutique asset management company in the world.

It also allows Perpetual to increase its total assets under management to around A$200bn ($139bn).

As part of the deal, Pendal shareholders who owned shares at the firm until 16 January 2023 will receive A$1.65 in cash per share and one Perpetual share against seven Pendal shares, among others.

Besides, Pendal shareholders will receive altogether 54,747,428 of Perpetual shares.

Perpetual chairman Tony D’Aloisio, said: “We are pleased to finalise the transaction that combines two of Australia’s oldest and most respected active asset management businesses.

“Through this transaction we have created a leading global multi boutique asset manager with significant scale, diversified investment strategies, world-class ESG capabilities and a stronger global distribution capability, complemented by Perpetual’s high-quality wealth management and trustee businesses.”

In addition, Perpetual has appointed two directors from Pendal to its board.

A new executive committee, which was revealed on 30 November 2022, has also assumed charge.

Perpetual managing director and CEO Rob Adams said: added: “With the transaction now finalised, the new leadership team is focused on delivering our global growth ambitions and executing on the strategic and financial benefits afforded by this transformational acquisition, including delivery of enhanced scale efficiencies; growth of our global distribution footprint; building on our leadership in ESG and realising A$60m in expected run-rate pre-tax expense synergies.”