LONDON: Polar Capital Holdings has acquired Dalton Capital, the parent company of Dalton Strategic Partnership LLP, as all pre-conditions including approval from the Financial Conduct Authority (FCA) were satisfied.
The initial consideration for the acquisition has been satisfied through £8.5 million in cash plus 7,482 new ordinary shares in Polar Capital.
Further deferred cash consideration in the region of £7.1m, is payable 12 months after completion, with the amount being linked to the value of AuM at the time.
Application has been made for the admission of the Consideration Shares to trading on AIM.
Admission of the Consideration Shares, which will rank pari passu in all respects with the Company’s existing shares in issue, is expected to become effective on 2 March 2021.
The acquisition of Dalton is in line with the Company’s growth strategy adding a leading European investment team which is complementary to Polar Capital’s existing European Income team, with established funds, and a longstanding track record.
In addition to adding £1.3bn of AuM to the Group (this figure excludes £0.28bn of Velox AuM that are not part of the transaction) taking the Group’s AuM to £21.6bn, it also provides Polar Capital with broader wholesale and institutional distribution into Europe, particularly in the German market and includes the existing Luxembourg SICAV umbrella which will aid Polar Capital’s product range for international distribution.
Integration of the Dalton business onto the Polar Capital platform will commence immediately and is anticipated to be completed within six months.
Gavin Rochussen, CEO, Polar Capital said: “The completion of Dalton is the next step in Polar’s growth and diversification strategy. Dalton’s highly experienced investment teams are an excellent addition to Polar Capital, and I am very much looking forward to working with them.”
Nick Mottram, CEO, Dalton said: “We are delighted to be joining Polar Capital and look forward to growing our strong and complementary franchise within the Group.”