SYDNEY, AUSTRALIA: A new player in the asset management industry has emerged from the merger of two companies with cutting-edge artificial intelligence (AI) technology. Tactical Global Management Limited (TGM) and Alpha Vista Financial Services (AVFS) have announced that they will join forces to create a global leader in AI-driven investment solutions.
TGM is a 25-year-old company that specializes in currency and risk management, while AVFS is a young and innovative firm that uses AI to generate insights and signals for financial markets. The two companies have been collaborating for two years to develop joint products, such as a downside protection overlay for equity investments that incorporates AI signals.
The merger will combine the complementary intellectual property and expertise of both companies, and leverage their existing client base and distribution network. The merged entity will offer a range of AI-powered products and services to institutional and retail investors, as well as other asset managers.
The deal will also benefit the shareholders of Income Asset Management Group Limited (IAM), which holds a 25% stake in TGM. IAM will receive a 2.5% stake in the merged entity, valued at $3,125,000, which is similar to the book value of its TGM investment. IAM has also agreed to waive most of its rights to additional equity and cash bonuses from the merger, in exchange for the cancellation of 15 million performance rights issued to other TGM shareholders.
The transaction has been supported by a $5 million placement into AVFS, which will provide working capital and fund growth initiatives for the merged entity. The merger is expected to be completed by the end of the year, subject to regulatory approvals and other customary conditions.
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