In addition, the firm will pay up to $30 million in 2005 and 2006, contingent upon certain financial performance criteria.
Under the agreement, Fox will become a subsidiary of Eaton Vance and will function as a separate business unit under Fox’s current management team, retaining autonomy of its investment processes and management structure.
Fox’s principals will continue to hold a 20% share of the company for five years, after which they will have the right to sell the 20%, which Eaton Vance will have a right to purchase.
Payments for the remaining 20% of the equity of Fox will be based on a multiple of earnings before interest and taxes in those years.
The Boards of Directors of both parties have approved the agreement and the deal is expected to close by October 31, 2001, subject to various approvals.
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