BT Investment Management (ASX:BTT) has acquired London-based boutique equity investment manager J O Hambro Capital Management for £209 million ($316.3 million).
The acquisition - which will be funded through a combination of debt, equity and cash - is expected to be earnings per share accretive within the first full year.
BT Investment said the acquisition will help it increase diversification as well as margins.
J O Hambro has funds under management of around £7.1 billion across the UK, Europe, Japan, Asia, and other regions including emerging markets.
It has 84 employees, and recorded net inflows of £2.6 billion in the year ending in June.
BT Investment said it does not plan any changes to the British company's day-to-day-operations, and will retain the brand and manage the boutique separately.
To help fund the purchase, BT Investment will conduct an entitlement offer to raise up to $275 million. The 4 for 5 entitlement offer will be priced at $2.15 per share.
Westpac (ASX:WBC) subsidiary Westpac Financial Services Group, which owns a 60% direct stake in BT Investment, has already indicated that it will vote in favour of the raising.
BT Investment also revealed it is currently expecting a net profit of between $28 million and $34 million for the financial year ending in September, assuming stable equity markets.
BTT shares slumped 6.53% in Tuesday's trading to $2.290 following the announcements.