Aviva has acquired US equity manager River Road Asset Management as it looks to grow its institutional business and expand in the US market.
Aviva Investors, the firm's global asset management arm, says it bought the Lousville-based company in order to generate more business from institutional investors.
The acquisition, the price of which is undisclosed, will see River Road become part of Aviva Investors North America, headquartered in Iowa.
News of the deal, which is expected to close by the end of the first quarter, saw Aviva's share price jump 1.85% to 401.80p, as at 10.30 GMT.
The UK insurance giant says the acquisition of River Road - which has $3.6bn assets under management - builds on its existing fixed income expertise in the US and combines it with River Road's equity investment capability.
"In River Road, we have found a top-quality equity management business with an impressive track record," says Alain Dromer, chief executive of Aviva Investors. "River Road will contribute significantly to our plans to increase our third-party institutional business and will help us provide our clients with a broader range of investment solutions."
Aviva, the world's fifth largest insurance group, entered the US market in 2006 with the acquisition of life insurer AmerUS for £1.6bn.
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