Atlanta Capital has over 80 institutional clients, including public pension funds, Taft-Hartley plans, corporations, and charitable and religious organizations.
Apart from managing $4.9 billion in large cap growth equities, Atlanta Capital also manages $1.3 billion in fixed-income assets, and offers a small-cap equity product with approximately $300 million in assets.
The deal, coupled with the recent acquisition of Fox Asset Management, Inc., will increase Eaton Vance?s assets under management by approximately 16% to $58 billion.
Atlanta Capital will become an indirect subsidiary of Eaton Vance, operating as an autonomous business unit under its current management team, the members of which have all signed long-term employment contracts.
Under the agreement, 80% of the $75 million will be paid in cash and the remainder in stock. Employees of Atlanta Capital will continue to hold the remaining 30% of the company?s stock with the right to sell to Eaton Vance over a five-year period beginning in 2005.
Eaton Vance will have the right to purchase the 30% minority interest in two stages in 2007 and 2009, the price based on a multiple of earnings before interest and taxes.
The transaction is expected to close by October 31, 2001, subject to various approvals.