Legal & General to acquire Atlanta-based investment advisor

FTSE 100-listed Legal & General is set to acquire Global Index Advisors (GIA), an Atlanta-based investment advisor focused on target date funds. The acquisition, due to be completed mid-2014, is to be made for a maximum consideration of $50.4m. GIA was formed in 1994 to create and market customer centric index target date fund products for the defined contribution (DC) market.Legal & General said the transaction forms part of its plan for international expansion of asset management. The addition of GIA would provide Legal & General with the potential to grow assets in the DC market in the UK and in the US, it said. The initial consideration is $30.75m with a deferred consideration of $1.5m payable over the period of two years from the date of completion. Further payments of up to a maximum of $18.15m are payable over a three year period, subject to performance and other conditions being met.Mark Zinkula, Chief Executive Officer of Legal & General's Investment Management said: "International expansion and the DC market are two extremely important drivers of future growth for LGIM, and the acquisition of Global Index Advisors today will allow us to accelerate our expansion in the US DC market." NR