Jupiter to buy UK non-profits assets manager CCLA for £100m

(Sharecast News) - Jupiter Fund Management said on Thursday that it has agreed to buy CCLA - the UK's largest asset manager focused on serving non-profit organisations - for £100m. CCLA manages more than £15bn in assets under management on behalf of charities, religious institutions and local authorities.

Jupiter said the deal is "highly compelling" from strategic, cultural and financial perspectives, delivering progress against multiple objectives.

It said the acquisition marks a significant step forward in delivering on its key strategic objective of increasing scale, specifically within its home market of the UK. It also opens up a new client channel and provides complementary investment expertise "with a high degree of cultural alignment".

The acquisition is expected to be materially accretive to management fee earnings per Jupiter share from day one, with further accretion over time as synergies are delivered.

The initial target for run-rate cost synergies on a fully integrated basis is at least £16m a year and this target is expected to be fully realised by the end of 2027.

Chief executive Matthew Beesley said: "This Acquisition helps us to increase scale in our home market of the UK, where Jupiter is already a leading player, without any disruption to our existing clients. It opens up a new client segment for us, broadening our appeal to a range of charitable and religious institutions, both in the UK and internationally, while also allowing us to expand our existing presence in the UK Local Authority sector.

"Importantly, Jupiter and CCLA share a common set of values, and each has a client-centric culture and history of focusing on active and differentiated investment solutions."

The acquisition will be funded entirely from existing balance sheet cash resources and no new equity or debt will be issued.