Asset manager Legg Mason Inc agreed to spend about $80 million plus future incentive payments to purchase London hedge fund firm Fauchier Partners, according to a securities filing on Wednesday. Legg Mason previously had not disclosed terms of its deal to buy Fauchier from BNP Paribas Investment Partners. It will be merged with Legg Mason's Permal fund-of-funds unit.In addition, Legg Mason of Baltimore said in the filing it will pay up to another $56 million contingent upon the achievement of financial targets up to four years after the closing of the deal.Legg Mason is in the midst of a search for its next chief executive after its prior leader, Mark Fetting, stepped down last fall. The Fauchier deal came on the watch of interim CEO Joseph Sullivan, who has also faced dissatisfaction from some of the company's far-flung investment affiliates over their financial arrangements with the parent.Along with the deal, Legg Mason also renegotiated financial arrangements with Permal. According to Wednesday's filing, in the three months ended Dec. 31, the new arrangements with Permal were the main driver of a $41.2 million increase in incentive-based compensation costs during the period.
Legg Mason, Inc. (Legg Mason) is a global asset management company. Shares of LM traded higher by 2.59% or $0.69/share to $27.33. In the past year, the shares have traded as low as $22.36 and as high as $29.49. On average, 1607760 shares of LM exchange hands on a given day and today's volume is recorded at 2009200.
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