Legg Mason is to integrate its Batterymarch Financial Management and Legg Mason Global Asset Allocation platforms in to newly-purchased QS Investors.
New York-based QS Investors is an investment firm providing customised solutions and global quantitative equity strategies. It has $4.1 billion under management, and $100 billion assets under advisory.
Batterymarch, Legg Mason's existing quantitative equity platform, and Legg Mason Global Asset Allocation, its incumbent solutions platform will lose their branding and be merged into QS Investors.
The acquisition is set to complete in the first fiscal quarter of 2015, and the firm said the move 'firmly postions Legg Mason within the rapidly growing global client demand for customized solutions, liquid alternatives and smart beta strategies'.
The expanded platform will be known under the QS Investors name, and run by its chief executive officer Janet Campagna and CIO Rosemary Macedo, while 'key investment professionals' from Batterymarch and LMGAA will join the existing QS team.
Legg Mason has predicted restructuring and transition costs of approximately $35 million, including $3 million this quarter, and $30 million during the 2015 fiscal year.