Fund manager Perpetual Limited has agreed to buy a 75 per cent stake in US-based investment management business Barrow, Hanley, Mewhinney & Strauss LLC for $US319 million ($A448 million).
Barrow Hanley, which manages about $US44.1 billion ($A61.9 billion) of funds, will boost Perpetual's scale of operations and triple its funds under management to $92.3 billion.
The Australian company expects to increase its underlying earnings per share by more than 20 per cent on an annualised basis, following the deal.
"This is a compelling acquisition. It provides Perpetual with world-class investment teams, diversifies our client base by sector and geography, and presents us with significant growth opportunities," Perpetual Managing Director Rob Adams said.
The stake buy is being funded through a combination of a new debt facility, available cash and proceeds of a A$225 million institutional placement of shares and a share purchase plan for existing shareholders to raise up to A$40 million.
The new shares will be issued at $30.30 each, a 9.8 per cent discount to Perpetual's closing price on Friday. Perpetual shares are currently in a trading halt pending completion of the institutional placement.
The fund manager group has also flagged a drop in full year profit, telling shareholders it would book a statutory net profit of $82 million for the year ended June 30, down from $115.9 million a year earlier.
It expects full year underlying profit after tax to be $93.5 million.
Perpetual said shareholders can expect a final dividend within the range of 80 to 100 per cent of its profit result, but future dividends will reflect the material impact of the takeover on statutory profit.