Listed asset manager Polar Capital today announced the completion of its acquisition of Dalton Capital.

Dalton is a UK-based boutique asset manager and the deal cost Polar Capital £8.5 million in cash plus 7,482 new ordinary shares in the later. A further cash payment of around £7.1 million is payable a year after completion although this amount is linked to the value of assets under management at the time.

Polar was attracted by Dalton’s European investment team which it views as being complementary to its own European income team. Polar believes the deal will aid wholesale and institutional distribution into Europe, particularly in the German market and includes the existing Luxembourg SICAV umbrella which will aid Polar Capital’s product range for international distribution.

The deal will bring the combined entity’s AUM to £21.6 billion by adding £1.3 billion from Dalton.

Integration of the Dalton business onto the Polar Capital platform will commence immediately and is anticipated to be completed within six months.

Gavin Rochussen, CEO, Polar Capital said in a statement to the market: “The completion of Dalton is the next step in Polar’s growth and diversification strategy. Dalton’s highly experienced investment teams are an excellent addition to Polar Capital, and I am very much looking forward to working with them.”

 Nick Mottram, CEO, Dalton added:“We are delighted to be joining Polar Capital and look forward to growing our strong and complementary franchise within the Group."