Invesco, a Bermuda-based investment management company, has acquired Morgan Stanley’s retail asset management business, including Van Kampen Investments.
Under the terms of the agreement, Invesco acquired Morgan Stanley’s retail asset management business, including Van Kampen Investments, in exchange for a combination of cash and equity.
According to Invesco, the final split between cash and equity provided to Morgan Stanley will total $800m in cash and 30.9 million shares in Invesco equity.
Under the transaction’s final cash/equity split, Invesco expects that the transaction will be incrementally more accretive than previously indicated by approximately 4 cents in the first 12 months after its scheduled June 1, 2010 close.
Martin Flanagan, president and CEO of Invesco, said: “Today, Invesco moves forward as an independent global asset management organization focused on bringing the tremendous value of this combination to our clients. With more than 700 investment professionals and a comprehensive range of diverse investment strategies, we are better positioned than ever to meet the needs of our clients across the globe.”
James Gorman, president and CEO of Morgan Stanley, said: “The combination of Invesco’s strong and diversified product portfolio with Van Kampen’s product strengths and leading distribution capabilities creates a formidable provider of retail asset management services. Partnering with Invesco, a world-class asset manager, allows Morgan Stanley to best unlock the value of our retail asset management business as we focus on our institutional business.”