LONDON (HedgeWorld.com)–Man Group plc* entered into an agreement to acquire 25% of BlueCrest Capital Management from its principals for ?105 million (US $178.5 million) in cash and shares.
The deal involves 4,959,210 new ordinary shares based on Man’s Nov. 24 closing price and cash of ?33.3 million. Merrill Lynch advised Man, and Goldman Sachs International advised BlueCrest in this transaction.
London-based BlueCrest, founded by Mike Platt, is owned by its management. The firm runs US$3.1 billion in fixed-income and currency strategies and has a staff of about 50. The core fund, BlueCrest Capital International Ltd., is a fixed-income arbitrage vehicle with US$2.4 billion and a compound annual return of approximately 16% since inception.
“BlueCrest will help us to accelerate our growth of asset management capacity whilst diversifying our product range,” commented Man Chief Executive Stanley Fink, in a statement. “It is exciting to find a manager like BlueCrest, which has critical mass as well as the potential to grow much further and this investment represents a significant opportunity for the two organizations to work together.”