Australia's Macquarie to buy US investment firm
Australia's biggest investment bank Macquarie Group said Wednesday it has agreed to buy US investment firm Delaware Investments for 428 million US dollars in cash.
Delaware Investments, owned by US insurer Lincoln Financial Group, provides services to private and institutional clients and has 125 billion dollars under management, Macquarie said in a statement.
The deal is subject to a purchase price adjustment at closing based on any change in net assets of Delaware Investments, headquartered in Philadelphia, Pennsylvania, the Australian bank said.
The transaction was expected to close before the end of the year, pending regulatory approval.
Upon completion of the takeover, Macquarie will have more than 300 billion US dollars of assets under management.
"Delaware will form a key element of Macquarie Funds Group's offering to our clients globally and will significantly enhance our existing North American asset management activities," said Shemara Wikramanayake, global head of Macquarie Funds Group, the asset management arm of the bank.
As of July 31, Macquarie Funds had 67 billion US dollars in assets under management.
Lincoln Financial said in a separate statement that the sale of Delaware Investments would allow the company to focus on its core activities in insurance and pension funds.