(July 19 – 16:20 ET) – YMG Capital Management Inc. has acquired AlphaQuest Capital Management Ltd. AlphaQuest manages about $650 million in assets primarily for institutional clients. As a result of the transaction, YMG now manages over $13 billion in assets.
The purchase price for AlphaQuest is payable in cash and YMG common shares on the basis of $3 a share. At closing, YMG paid a portion of the purchase price in cash and issued 200,000 YMG common shares.
The balance of the purchase price, up to 350,000 shares, will be paid by YMG, subject to client retention, in two instalments on the second and third anniversary following the date of closing. YMG expects that its revenues will increase by 8% as a result of the acquisition.
“AlphaQuest, with its long-term track record managing balanced portfolios for institutional clients, is an excellent strategic fit with YMG’s investment management business,” Greg Edwards, president of YMG, said in a press release. “We have been looking for the right acquisitions to grow our business and we are confident that the acquisition of AlphaQuest will be a positive addition to our active institutional management base,” Edwards stated.
“AlphaQuest will now be able to offer clients greater access to a broader range of products, resources and technology,” said Gerry Graham, senior vice president of AlphaQuest. “The combined firm offers a platform to better serve our clients. I look forward to joining YMG’s strong equity team,” continued Graham.
-IE Staff