Fund manager Liontrust has agreed to acquire smaller rival Majedie Asset Management in a deal worth up to £120m.

The deal boosts Liontrust’s assets under management by £5.8bn to £42.3bn.

Liontrust will pay an initial £80m, with an additional £40m for excess NAV and deferred consideration. The acquisition is due to complete in April.

The Majedie team will be renamed Liontrust Global Fundamental and will continue to be headed by James de Uphaugh.

The Liontrust brand will be applied to all Majedie’s UK, US, Global and International equity funds on the completion of the deal.

There will be no change to the team’s investment process.

Rob Harris, CEO of Majedie, will join Liontrust as head of global institutional business as part of the deal.

Mr Harris said: "We have worked hard to build an enviable performance track record spanning almost 20 years, and the acquisition by Liontrust provides a compelling strategic and cultural fit, with a deeply ingrained focus by both firms on rigorous investment processes, a commitment to responsible capitalism and first-class client service.”

John Ions, chief executive of Liontrust, said the acquisition will hasten the asset manager’s expansion into institutional funds by enhancing its investment capability and client service.

Majedie is one of a number of asset managers acquired by Liontrust in recent years. 

Liontrust acquired Architas Multi-Manager and Architas Advisory Services in a deal worth up to £75m last year. The asset manager also completed the acquisition of Neptune in October 2019.