Henderson Global Investors, with £72.5 billion ($123.4 billion) of assets under management, has agreed to buy all of the issued shares of US-based Geneva Capital Management, expanding its North America business.

London-listed Henderson Global Investors, with £72.5 billion ($123.4 billion) of assets under management, has agreed to buy all of the issued shares of US-based Geneva Capital Management, a business with $6.3 billion of AuM.

Henderson is paying an initial consideration of $130 million for the firm; there is a deferred consideration, based on revenue retention, of up to $45 million and a growth-related earn-out of up to $25 million, it said in a statement.  

The transaction is expected to be accretive to earnings in the first full year after the acquisition is made, it said.

As far as North American business is concerned, Henderson said its operations are growing “rapidly” and that AuM has doubled since 2011. In May this year, its US mutual fund range reached $10 billion for the first time, with net inflows of $1.4 billion as of 31 May, since the start of 2014.

The purchase of Geneva Capital Management “accelerates delivery of Henderson's strategy to grow and globalise its business”, the firm said in a statement. After the acquisition is complete, Henderson’s North American business will have around $18.3 billion of AuM, or around 15 per cent of group assets. The move will also double Henderson's number of US-based investment professionals.