First Eagle Investments announced that it will acquire Diamond Hill Investment Group (DHIL) in an all‑cash transaction valued at approximately $473 million, or $175 per share. The offer represents a 49% premium to DHIL’s closing price of $117.48 on December 10, 2025 and a 44% premium to the 30‑day volume‑weighted average price. The deal is expected to close in the third quarter of 2026, subject to customary closing conditions, including shareholder approval, mutual‑fund approvals, and regulatory clearance. DHIL’s board approved the transaction unanimously, and First Eagle will retain DHIL’s Columbus, Ohio headquarters and continue to operate under the DHIL brand and investment philosophy.
First Eagle’s acquisition expands its fixed‑income footprint and adds DHIL’s U.S.‑focused multi‑cap equity platform to its global value and small‑cap teams. The combination is designed to broaden distribution and enhance client offerings while preserving the independent culture that has driven DHIL’s performance. First Eagle’s CEO, Mehdi Mahmud, said the deal “is the next step in our ongoing effort to expand the range of investment solutions we offer to meet clients’ needs,” underscoring the strategic fit between the two firms.
DHIL’s recent financials provide context for the valuation. In Q3 2025, revenue fell 4% year‑over‑year to $39.0 million, driven by a $935 million outflow from equity strategies that offset a $976 million inflow into fixed‑income strategies. Net income attributable to common shareholders declined 7% to $14.6 million, while diluted EPS slipped from $5.35 to $4.99. In contrast, full‑year 2024 results showed revenue up 10% to $151.1 million and net income up 2% to $43.2 million, with diluted EPS rising 10% to $15.66. DHIL’s net operating margin improved to 29% from 26% in 2023, and its adjusted net operating margin rose to 32% from 30%. The firm’s assets under management and advisement totaled $32.4 billion as of September 30, 2025, and the pro‑forma combined AUM/AUA of the two companies is projected at roughly $208 billion.
Management comments highlight the strategic intent behind the deal. DHIL CEO Heather Brilliant noted that the company has been “making progress in diversifying our asset base, vehicle offerings and client types,” citing a $5.5 billion increase in fixed‑income assets in Q3 2025 and the launch of new core‑plus bond and securitized credit strategies. Portfolio managers Austin Hawley and Henry Song added that the partnership “will accelerate the evolution of our strong foundation” and that they will “continue to apply the same disciplined approach and investment philosophy our clients rely on today, now supported by First Eagle’s expanded capabilities, resources and distribution network.”
The transaction aligns with a broader consolidation trend in boutique asset management and follows First Eagle’s recent $1.5 billion investment from Genstar Capital in August 2025, which was earmarked for organic growth and acquisitions. The deal includes a 35‑day go‑shop period that ends on January 14, 2026, giving DHIL the opportunity to seek alternative proposals. The transaction is subject to customary regulatory approvals, and both companies have indicated that they expect a smooth integration process that preserves DHIL’s brand and client relationships.
For shareholders, the all‑cash offer delivers a substantial premium and immediate liquidity. For First Eagle, the acquisition adds a proven U.S. equity platform and expands its fixed‑income capabilities, positioning the combined entity to capture broader market opportunities and enhance distribution. The deal is a material event that will reshape the competitive landscape of the U.S. asset‑management sector.
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