Macquarie Group has agreed to buy United States-based Delaware Investments from Lincoln Financial Group for $516 million in cash, subject to certain closing adjustments.
"The acquisition is consistent with Macquarie's strategy to develop a global asset management capability through building a highly regarded team of investment professionals, offering an attractive suite of investment products and gaining broader access to the world's largest capital market," Macquarie said.
Delaware, based in Philadelphia, had over $150 billion in assets under management as at 30 June, 2009. The firm employs around 580 people.
Upon completion of the transaction, the combined assets under management (AUM) of Macquarie and Delaware are expected to be over $361 billion, Macquarie said.
"Delaware's US-based expertise substantially complements Macquarie's global asset management activities," Macquarie Funds Group (MFG) executive director Ben Bruck said.
"Macquarie plans to offer its clients Delaware's investment strategies through its global network.
"We will also explore opportunities to offer Macquarie's global strategies and products to US clients through Delaware, most notably in real assets, global fixed income and alternatives."
Delaware President, Patrick Coyne, and his management team will continue to run Delaware. Coyne will report to Bruck, an executive director of Macquarie Funds Group and head of Macquarie's Affiliated Managers Division, who will relocate to Philadelphia.
The transaction is expected to be completed around the end of 2009. MFG is the asset management arm of Macquarie.
