Amundi today announced the signing of an agreement to acquire Smith Breeden Associates. Paris, France-based Amundi is a leading European asset management firm with close to EUR 750 billion ($1 trillion) in assets. Durham, NC-based Smith Breeden Associates, with an AUM of $6.4 billion, is an institutional asset management firm specializing in the major U.S. fixed income sectors.
The final agreement between Amundi and Smith Breeden is subject to customary conditions, including informing regulatory authorities and gaining the approval of certain clients and shareholders. The closing of the transaction should take place by the end of September 2013.
For Amundi, the acquisition of Smith Breeden has three key objectives:
- Offering an asset management expertise in U.S. dollar products to its institutional and corporate clients in Europe, Asia and the Middle East.
- Strengthening the U.S. component of its Global Fixed Income expertise.
- Enhancing the development of Amundi's expertise in the U.S.
For Smith Breeden, the rationale for this transaction is equally compelling, as it gives Smith Breeden the opportunity to:
- Strengthen its relationships with U.S. clients.
- Reach out to Amundi's worldwide institutional client base.
- Benefit from Amundi's global investment, research, client servicing and operating resources.
Upon the closing of this transaction, Smith Breeden will be renamed Amundi Smith Breeden, and be a fully-owned and controlled subsidiary within the Amundi group. Patrick Pagni, currently Amundi's Senior Regional Officer for North America, will serve as Executive Chairman of Amundi Smith Breeden, and Mike Giarla will continue to manage the company as Chief Executive Officer. All key people within Smith Breeden expressed their support of the transaction. The company will be part of Amundi's Fixed Income organization; there will be no change in Smith Breeden's investment process or personnel. The acquisition of Smith Breeden is a significant contribution toward Amundi's goal of creating a global fixed income platform with established regional expertise.