Asset manager Schroders has received approval from Cazenove Capital shareholders to acquire the latter for GBP424 million (US$644 million).
The move will bolster Schroders’ holdings with Cazenove’s GBP17.2 billion in assets under management (AuM), made up of GBP12.1 billion in private banking and GBP5.1 billion in funds.
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Schroders’ assets will significantly increase in both the private banking and UK intermediary space, through the deal, and will raise it’s total AuM to approximately GBP254 billion.
Under the deal, Schroders intends to continue using the Cazenove brand within its private banking unit, while Cazenove has confirmed that all of its fund managers will join Schroders.
Schroders said the acquisition will provide economies of scale, principally in UK funds distribution and infrastructure, which the asset manager expects will enable it to achieve pre-tax cost synergies of between GBP12 million and GBP15 million a year.
Schroders CEO, Michael Dobson, said: "This transaction creates a leading, independent private banking and wealth management business in the UK, and brings additional investment talent in complementary strategies across UK and European equities, multi-manager and fixed income to asset management."
Cazenove Capital CEO, Andrew Ross, said: "In combining with Schroders, we will create a pre-eminent independent private banking and charities business in the UK, with a broader capability covering investment management, financial planning, deposit-taking and lending services."
