Invesco has entered into a definitive agreement to acquire Morgan Stanley’s retail asset management business, which will include US fund manager Van Kampen Investments.
Under the terms of the agreement, Invesco will acquire a diversified business with $119 billion in assets under management across equity, fixed income, alternatives and unit investment trusts.
The transaction, which is expected to be finalised mid next year, is valued at $1.5 billion, including cash and stock that provides Morgan Stanley with a 9.4 per cent equity interest in Invesco.
Invesco’s organisation will expand by around 650 investment, distribution and operations support professionals globally following the completion of the acquisition.
The transaction is also set to strengthen Invesco’s position in the Japanese investment management market.
Invesco chief executive Martin Flanagan said the acquisition will better position Invesco for long-term success.
“This combination of talented teams from both organisations will enhance Invesco’s ability to deliver meaningful solutions to our retail and institutional clients around the world,” he said.
“We are excited to expand the depth and breadth of our investment strategies.”
