Virtus Investment Partners acquired Westchester Capital Management for $169.3 million total purchase price ($135 million base cash plus retention and earn-out payments), a transaction completed in October 2021, structured as cash.
Westchester Capital Management operates in Event-driven / merger arbitrage, is based in Valhalla, NY. Through subsidiary Virtus Partners, Virtus acquired 100% of the membership interests of Westchester Capital Management, a Valhalla, NY manager recognized for global event-driven and merger-arbitrage strategies with about $5 billion in assets. The base purchase price was $135 million in cash, with up to $20 million in revenue-retention payments and additional earn-outs; the total purchase price recorded was $169.3 million, generating $23.0 million of goodwill and $144.4 million of intangibles.
Added a differentiated liquid-alternatives capability (event-driven/merger arbitrage) that broadened Virtus's non-correlated strategy offerings.
Established event-driven/merger-arb franchise offering diversification from long-only equity and fixed income. Expanded liquid-alternatives lineup across funds and institutional accounts. Operated as affiliated manager Westchester Capital Management
Advisory firms were not disclosed for this transaction.