12th January 2011
Henderson has struck a deal for Gartmore for £335m and announced lock in agreements for 13 key Gartmore managers covering around 84 per cent of the assets under management.
Henderson will have £78.1bn assets under management following the deal, reported here on Reuters.
The all share deal will see Gartmore swapping two of its shares for every three of Gartmore's and should be finalised by the summer, when the Gartmore name will disappear.
The UK Oeic range will also be rationalised in the summer, followed by the Luxembourg range, though Henderson believes many funds in the two firms' ranges are complementary which should minimise disruption. In particular, it says the deal will build its expertise in emerging markets and in the absolute return space, one reason why it has acted so quickly to bind in the managers. Gartmore has around £6bn in assets managed in the absolute return style.
Here Citywire reports the key fund managers who have signed up plus a few high profile fund managers and directors with whom negotiations are ongoing.
Gartmore brought in Goldman Sachs to seek a buyer after the departure of Roger Guy from the European Absolute Return fund in November. Redemptions from that fund topped £500m destabilising the group. Henderson says one of its aims is to rebuild the assets of this fund under the stewardship of John Bennett.
However investors in Gartmore's IPO may be very disappointed as the firm listed at 220p a share late in 2009. Blogsite Capitalists@work suggests this is a double whammy given the FTSE's recent progress.
Before the deal, some commentators were querying the price. For historical interest here is Lawrence Gosling's from Investment Week.
However stock markets reacted positively to the deal this morning as shown by this report on efinancialnews .
The loss of the Gartmore brand means one of the most established names in UK fund management disappears. It was founded in 1969 initially to manage the money of the Cayzer family shipping dynasty.