Liontrust has has conditionally agreed to acquire the entire issued share capital of global investment management firm GAM Holding AG.

The proposed acquisition is expected to complete in the fourth quarter of 2023.

The deal will create a global asset manager with £53bn in assets on a pro forma basis.

The consideration will be satisfied by the issue of 9.4 million new ordinary shares in Liontrust, and it is expected that GAM shareholders will own approximately 12.6% of the combined group on completion.

The proposed acquisition will accelerate Liontrust’s strategic progress and growth through the broader investment capability and global distribution of the enlarged company.

GAM’s existing product offering is complementary to Liontrust’s especially in fixed income and alternatives.

GAM will strengthen Liontrust’s fixed income offering, adding capabilities in asset backed securities, emerging markets debt, global credit, global rates catastrophe bonds and insurance-linked securities.

Equities will continue to be the largest product for the enlarged company, with GAM adding and strengthening capabilities in Asia, Japan and emerging markets, thematic global equities, Europe, luxury brands and UK income.

GAM will also expand the multi-asset and alternatives propositions and provide a capability in wealth management.

This increased product depth will be expected to support growth in Liontrust’s market share over time and enable us to better mitigate against market volatility and changing demand for investment styles.

Liontrust intends to rebrand all GAM funds as Liontrust as soon as possible after completion of the proposed acquisition and for the GAM business to operate under the Liontrust brand.

The acquisition will enhance distribution globally and the opportunity to increase sales and market share.

GAM is geographically diverse with 3,500 clients based in almost every continent, with 2,700 in Europe.

Switzerland, Germany, Italy, the US, Iberia and Latin America are GAM’s largest markets outside the UK.

Liontrust and GAM are both focused on providing “excellent” client service and the enlarged company will deliver engaging experiences for investors globally.

Liontrust chief executive John Ionssaid: “This is a significant acquisition that accelerates the growth of Liontrust through enhancing our distribution globally, product capability and investment talent.

“Liontrust and GAM are both client centric businesses that thrive on providing solutions and first-class service. The enlarged company will provide the platform from which to deliver this to a broader client base.

“We have been impressed by the quality of the investment teams at GAM. There is commonality in that Liontrust and GAM are both committed to independent and distinct processes for each of their investment teams.

“Liontrust specialises in providing an environment in which investment teams can thrive, including through the excellence of our sales and marketing and a robust business infrastructure, strong risk and compliance culture, and the stability that comes with financial strength.

“Liontrust is committed to the international business and client relationships that GAM has built. We are especially pleased to have such a strong operation in Switzerland which has been so important to GAM’s heritage.

“The quality of the investment teams across the different asset classes, the talent in the business and the breadth of the distribution at GAM, combined with Liontrust’s existing investment capability and strong brand, sales, marketing, and communications, gives me great confidence we will grow the enlarged business to create long-term value.

“Liontrust and GAM will work together to provide a seamless transition for clients and enhancing the service provided in the future.”