Clime Investment Management will push its gross assets under management past $700 million with the acquisition of a Sydney-based Australian equities boutique.
Clime will purchase CBG Asset Management, which has $130 million in assets across three mandates including a listed investment company, for $3.6 million. This comprises $3.2 million on completion of the acquisition, plus $375,000 12 months from that date, assuming funds under management retention and certain other conditions.
Consideration represents 6.5 million Clime shares at 50c per share and a further 750,000 shares on 30 June 2018, subject to the above requirements. CBG principal Ronni Chalmers will also join Clime's management team.
Chalmers said: "The combined funds team will offer a deeper and broader research capability. The extended product list will be of immense interest to CBG clients."
Clime chair Donald McLay added: "This is the second in a number of positive announcements we expect to make as the strategies outlined at last year's annual general meeting begin to be realised. We are very pleased to have Ronnie and the team join us."
"The acquisition is earnings per share-accretive at an operating level before balance sheet items in a business where we understand the risks and can benefit from shared infrastructure," McLay said.