Impax Asset Management Group of the U.K. is acquiring Pax World Management, the investment adviser to Pax World Funds, creating a global firm specializing in sustainable investing.
Under the terms of the deal, Impax will acquire Pax for $52.5 million, with up to $37.5 million in additional payments scheduled for 2021 based on Pax's performance.
Subject to approval by trustees and shareholders of Pax World Funds, the move will unite Pax, which manages approximately $4.5 billion in assets, with Impax, which manages about $9.4 billion.
The two firms formed a partnership in 2007 to design and manage the Pax Global Environmental Markets Fund, which was launched in 2008 and today has over $500 million in assets.
In announcing the acquisition in a release, the firms said they have "highly complementary areas of investment management expertise" as well as a "strong product and geographic fit."
Under the terms of the transaction, Pax will be renamed Impax Investment Management (US) LLC and will continue to manage Pax World Funds, which will retain its name, as the U.S.-based mutual fund division of Impax's global business. Joe Keefe, Pax's president and chief executive, will continue to lead the renamed company, and will take a seat on the Impax board. Mr. Keefe and other members of Pax's management and senior staff have agreed to stay on, the release said.