Navigator Global Investments (ASX:NGI) agreed to acquire a portfolio of net revenue share interests in 17 alternative asset managers from funds managed by and clients of Stable, for a total consideration of $195 million, according to a Monday Australian bourse filing.
The company said the acquisition is funded through AU$145 million in a fully underwritten pro rata accelerated non-renounceable entitlement offer and AU$136 million of NGI scrip consideration, with up to 60.4 million new shares to be issued under the entitlement offer.
The scrip consideration is priced at AU$2.31 per NGI share, being NGI's 20-day volume-weighted average price, the filing said. Navigator Global and Stable will also enter into a long-term strategic partnership for the management and monitoring of the NGI Stable Growth Portfolio, at a flat fee of $1.6 million per year for an initial six-year term, the filing added.
The company said that the acquisition is expected to deliver low double-digit earnings-per-share accretion and improvement in key financial metrics.
Navigator Global expects fiscal 2026 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of between $100 million and $104 million, the filing added.
Trading in the company's shares was halted.