By Ian Walker
Bridgepoint Group shares rose after the company said it was buying real-estate investment platform Kayne Anderson Real Estate in a deal that boosts its assets under management to $117 billion.
Shares were up 29 pence, or 12%, at 261.60 pence in early afternoon European trading and leading the Europe-wide Stoxx 600 index risers. However, they are currently down 7.4% over the year to date.
FTSE 250-listed investment company Bridgepoint said it was buying Kayne Anderson for $1.39 billion. It will pay $759 million in cash and issue 189 million shares.
Boca Raton, Fla.-headquartered Kayne Anderson has assets under management of $22 billion.
"The transaction strengthens the quality and diversification of the Bridgepoint Group's earnings, broadens our capabilities and enhances our long-term growth prospects," Bridgepoint Chair Tim Score said.
Bridgepoint's acquisition is an encouraging strategic step, Cavendish analyst Jens Ehrenberg wrote.
Bridgepoint said it has performed well over the year to date and expects to report fee related earnings for the first half year in line with consensus.
Underlying earnings before interest, taxes, depreciation and amortization consensus for the half year ending June 30 is 155 million pounds ($204.6 million), while underlying pretax profit is 125 million pounds, according to the company's website.
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