TEL AVIV London-headquartered private equity firm XIO Group has signed a deal to buy Meitav Dash, which manages more than $32 billion in assets, Israel's second-largest investment house said on Thursday.
Meitav Dash shareholders can choose to receive 22 shekels ($5.75) per share in cash, a 61 percent premium to the market price, or receive 13.7 shekels per share in cash now and another 13.7 shekels per share over three years in the form of a bond.
Should all shareholders opt for the all-cash deal, the deal would be worth 1.48 billion shekels ($386 million).
"We received an offer from this international fund a few months ago and even though we weren't interest in a sale the offer was good enough that we thought we should examine it," Chief Executive Ilan Raviv told Reuters.
He added that the investment firm's 800 workers who hold options worth 50-100 million shekels would also profit from the deal.
The boards of both companies have already approved the transaction, but it remains subject to regulatory and shareholder approval, Meitav Dash said.
"The acquisition of Meitav Dash is an ideal fit for XIO's strategy," said XIO Chief Executive Joseph Pacini.
Last year, XIO bought Israeli medical device maker Lumenis for $510 million.
BRM Group owns 28.5 percent of Meitav Dash and businessman Zvi Stepak holds 27.3 percent. Both have committed to voting in favor of the deal.
($1 = 3.8287 shekels)
(Reporting by Steven Scheer and Tova Cohen; editing by Jason Neely)