Looking to boost its fortunes amid years of net redemptions from its funds, Legg Mason (LM) agrees to the purchase of global quantitative equity firm QS Investors. Based in New York, QS has $4.1B in AUM and nearly $100B in assets under advisory.
Legg Mason's existing quantitative platform - Batterymarch Financial Management and Legg Mason Global Asset Allocation - will be integrated over time into QS.
The deal is expected to close in FQ1 of fiscal 2015 and should be modestly accretive in year one. The company expects to incur restructuring and transition costs of about $35M. Terms of the deal were not disclosed.