Miton buys Psigma for £13m

Aim quoted fund management group has today (2 July) announced the acquisition of the entire issued share capital of PSigma Asset Management Holdings Ltd.

The purchase of PSigma Asset Management Holdings Limited from Punter Southall Group Limited is expected to complete tomorrow (3 July).

The deal will see Miton take on PSigma’s total assets under management, which were £750m on 30 June, with UK Income mandates representing some 91 per cent.

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The PSigma franchise was built upon Bill Mott’s and Ian Chimes’ track record in UK Income funds.

The role of Mr Mott and his team will be unchanged following the change in ownership and Mr Chimes will head up Miton’s enlarged UK sales and marketing operation.

The deal will be made up of a mixture of cash and ordinary shares in Miton and will be between £6.75m and £13m dependent upon the scale of PSigma’s assets under management retained in two years’ time.

The initial cash consideration of £5.25m is payable upon the date of completion of the acquisition and is funded from Miton’s internal cash balances.

Ian Dighé, executive chairman of Miton Group, said: “Bringing Bill Mott and his team together with Miton is a significant step forward to the benefit of our joint client base, particularly in the UK Equity Income sector.

“Both businesses have distinctive and forward-looking investment strategies. With combined assets under management of £2.8bn, we will have an even stronger platform to accelerate the growth of our business.”

Mr Chimes, managing director of PSigma Asset Management, said: “The whole team at PSigma is excited about the opportunity to grow our assets in the future in combination with Miton.

“We bring distinctive single strategy funds and our particular expertise in equity income investing, which will increase the breadth and depth of the combined product range, benefitting both current and prospective clients.

“Both companies have a complementary culture, investment style and product fit, with minimal overlap.”