Global investment management firm AllianceBernstein will acquire W.P. Stewart, an asset management company, according to a definitive agreement the two sides have just reached.
Upon completion of the acquisition, W.P. Stewart’s investment services will be added to AllianceBernstein’s equity offering. W.P. Stewart’s team of investment managers will remain in place, while gaining access to AllianceBernstein’s broad global reach and research team.
AllianceBernstein has US$444 billion in assets under management. W.P. Stewart currently manages assets amounting to US$2 billion.
“While our equity business is well positioned to deliver in many areas, we also understand that our clients want more options, particularly in concentrated strategies that can help improve alpha generation potential within their portfolios,” says Peter S. Kraus, chairperson and CEO of AllianceBernstein. “W.P. Stewart has an impressive track record as concentrated growth managers and brings a unique set of capabilities to our existing equity platform that positions us even better to serve our clients.”
At the closing of the transaction, AllianceBernstein will pay W.P. Stewart shareholders $12 per share in cash and will issue to W.P. Stewart shareholders transferable contingent value rights entitling the holders to an additional cash payment of $4 per share if the assets under management in the acquired W.P. Stewart investment services reach $5 billion on or before the third anniversary of the closing.
W.P. Stewart currently has approximately five million shares outstanding.
The closing is expected to occur in about four to six months. It is subject to customary closing conditions, including W.P. Stewart shareholder approval and requirements about retention of assets under management and cash.
In connection with the proposed transaction, AllianceBernstein will file transaction-related documents with the Securities and Exchange Commission in the United States.
To help ensure a smooth transition, founding partner William P. Stewart, an investor with nearly 60 years of experience, will stay on possibly through the close of the deal. He will then retire from the firm.