Virtus Investment Partners, inc (VRTS) Q2 2021 Earnings Call Transcript fool.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fool.com Daily Mail and Mail on Sunday newspapers.
Virtus expanding manager stable with Westchester acquisition
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Virtus Investment Partners entered into an agreement to acquire global event-driven money manager Westchester Capital Management.
The agreement calls for Virtus to acquire the firm for $135 million at closing, with a potential for future payments based on revenue and growth, said Virtus spokesman Joe Fazzino. Westchester Capital is currently owned by the principals of the firm, and Lincoln Peak Capital owns a minority stake in the firm as well, Mr. Fazzino said.
The deal is expected to close in the second half of 2021, he said.
The firm will join Virtus Investment Partners’ group of affiliated boutique money managers. Roy Behren and Michael Shannon, Westchester’s managing partners and portfolio managers, agreed to long-term employment and are “reinvesting a significant portion of the transaction proceeds into the firm’s investment strategies,” according to the release.
Operator
Good morning, my name is Joelle and I ll be your conference operator today. I would like to welcome everyone to the Virtus Investment Partners Quarterly Conference Call. The slide presentation for this call is available in the Investor Relations section of the Virtus website www.virtus.com. [Operator Instructions]
Sean Rourke
Investor Relations
Thank you, Joelle, and good morning everyone. On behalf of Virtus Investment Partners, I d like to welcome you to the discussion of our operating and financial results for the fourth quarter of 2020. Our speakers today are George Aylward, President and CEO of Virtus; and Mike Angerthal, Chief Financial Officer.