Investec has beaten Canaccord to win the
takeover bid for Evolution Group, the owner of UK private client
investment manager Williams de Broë (WdB).
Investec’s wealth business, Investec Wealth
& Investment, will have total assets under management (AuM) of
about £23bn ($37bn) in the UK.
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Investec will pay £233.2m for Evolution which
includes WdB and its investment bank Evolution Securities.
The share offer also flagged potential
headcount reductions in support functions, but claimed the cuts
would not impact client service.
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By GlobalData“The acquisition of Evolution is designed to
create a major UK player in the private client investment
management industry that would benefit from increased resources and
expertise and enjoy further economies of scale,” Investec’s share
offer document said.
“There is a strong geographic fit between the
two businesses, with Evolution’s UK footprint adding to Investec’s
existing UK network through its offices in Birmingham and the
South-West of England.”
Double boost to AuM
The listed South African banking group will
gain about £8m AuM through the transaction.
WdB bought the UK-based private investment
management (PIM) business of BNP Paribas Wealth Management last
month, in a deal believed to be worth more than £5m.
As a result of the BNP takeover, WdB, whose
AuM stood at £6bn ($9.8bn) as at 30 June 2011, acquired £1.8bn in
AuM. Investec’s AuM stood at £14.9bn at 31 March 2011.
No indication was given of when the takeover
is scheduled to be completed.
