Principal Global Investors Australia will acquire Morley Financial Services (Morley Financial) for the sum of $75 million.
Morley Financial, a US-based stable value asset manager has more than $14 billion in institutional assets under management.
Commenting on the deal, Principal Global Investors Australia chief executive and head of international offices Grant Forster said: “Stable value, is an important capability – one we believe baby boomers will increasingly demand as they move toward retirement and seek investment options to preserve their capital and generate income.”
“In addition, this acquisition will enhance our ability to offer outcome-based solutions, such as absolute return strategies, which will help us further penetrate the institutional market.”
The acquisition of Morley Financial continues Principal’s multi-boutique approach to managing acquisitions. Since 2001, the group has acquired Spectrum Asset Management, Post Advisory Group and Columbus Circle Investors.
Morley Financial will continue to be led by Jill Cuniff, who has been Morley’s managing director and chief investment for the past six years.
It will also retain its investment philosophy and process, as well as the company name, organizational structure and headquarters in Portland, Oregon.
The transaction is expected to be neutral to 2007 GAAP earnings per diluted share (EPS) and marginally accretive to EPS in 2008.
