Investment company, Contango Asset Management (ASX:CGA)
HAS announced plans to snap up Switzer Asset Management (ASX:SWT)
for about 7.2 million shares.
Marty Switzer will also become the new CEO of the firm.
It comes as Contango increased its stake in the fund manager from 46.25 per cent to 100 per cent.
The acquisition will allow Contango to strengthen its retail and financial adviser relationships, and it will able to launch retail-backed investment funds, as Switzer has a retail licence.
Switzer Asset Management’s funds under administration sits at $110 million. Peter Switzer who is known for his TV show on Sky News Buiness, will remain Chairman of the investment committee.
Paul Rickard will also remain on the investment committee.
Contango is trading flat at $0.45