The British money manager will pay two shares and £10 for every Perpetual share, valuing the UK fund manager at about 8.8% of its £11.8 billion of assets under management, according to the Financial Times.
The deal ends Perpetual’s year-long search for a buyer, after founder and principal shareholder Martyn Arbib declared his desire to sell the business he began a quarter century ago.
Amvescap, an early front-runner in the bidding, bowed out earlier this year, after internal disagreements over the initial asking price. Citicorp reportedly walked away from the talks last week, while JP Morgan’s interest dimmed following its acquisition by Chase last month.
The Perpetual brand is expected to stay, complementing Amvescap’s other UK brand, Invesco.
Following the transaction, AMVESCAP will have funds under management of $431 billion, and will be the second largest provider of UK unit trusts.
Amvescap PLC also controls US fund families AIM and Invesco.