Liontrust Asset Management is to acquire Walker Crips Asset Managers (WCAM) in a £12m deal.
The deal will include top performing managers Stephen Bailey and Jan Luthman, who will move across to Liontrust.
Bailey and Luthman, both company directors, are entitled to 20% of the value of the deal between them, a payout worth £2.4m, but have opted to waive this in favour of a separate remuneration agreement with Liontrust.
They will continue to manage the CF Walker Crips UK Growth fund, Equity Income fund, UK High Alpha fund, CF UK fund, and two Institutional segregated accounts.
Liontrust said it will drop the WCAM name from the funds and rebrand them Liontrust. There will be no change to the investment process on the funds, the group said.
Walker Crips will delegate the management of the CF Walker Crips Corporate Bond, Select Income, and Global Growth funds elsewhere within the Walker Crips Group.
The move will swell Liontrust’s assets under management by £604m to £2bn.
The £12.3m consideration includes £6m payable in cash on completion of the takeover, as well as 1,851,719 new ordinary shares to be issued to Walker Crips.
John Ions, chief executive of Liontrust, said: "The acquisition of WCAM significantly strengthens our fund management capability. Combining our existing fund managers with Stephen Bailey and Jan Luthman will create one of the strongest ranges of UK equity funds and teams.
"Their macro investment process and style is complementary to our Economic Advantage and Cashflow Solution teams.
"The deal shows Liontrust's commitment to active fund management and those fund managers who have conviction in their investment processes. The market place is very crowded but companies that consistently add value will be recognised and their clients rewarded."
In October last year Liontrust completed the takeover of emerging market boutique Occam in a deal worth £4m.
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