First Eagle to Acquire Diamond Hill in $473 Million All-Cash Deal, Promising 49% Premium for Shareholders

Transaction Highlights: All-Cash Deal and Significant Premium for DHIL Shareholders

Diamond Hill Investment Group (NASDAQ: DHIL) will be acquired by First Eagle Investments in an all-cash transaction valued at approximately $473 million. Shareholders of Diamond Hill will receive $175 per share, marking a notable 49% premium over the company’s December 10, 2025 closing price of $117.48 and a 44% premium over its 30-day volume-weighted average price.

Diamond Hill Team and Philosophy Remain, Expanded Platform for Clients

Importantly, Diamond Hill will keep its headquarters in Columbus and continue to operate under its existing brand, with no changes to its investment team or philosophy. First Eagle’s acquisition promises to broaden resources and distribution while preserving the disciplined, long-term investment approach that has defined Diamond Hill’s reputation.

According to leadership, the “cultural fit” between both firms and their complementary strengths in U.S. equities and fixed income will mean more robust offerings for clients of both companies. Diamond Hill brings its well-established U.S. multi-cap equity platform, which pairs with First Eagle’s Global Value and Small Cap capabilities.

Transaction Details and Timetable: Shareholder Vote Required, No Dividends Until Closing

The acquisition is unanimously supported by Diamond Hill’s Board of Directors and is slated for completion by the third quarter of 2026, pending customary closing conditions, shareholder approval, mutual fund-related votes, and regulatory reviews. Notably, Diamond Hill will not pay out quarterly dividends through the close of the transaction, and upon closing, its shares will cease trading on Nasdaq.

Additionally, the agreement features a 35-day “go-shop” period, allowing Diamond Hill to solicit superior offers until January 14, 2026. While the door is open to potential bids, there’s no assurance of a better proposal emerging. Diamond Hill’s board will disclose developments only as necessary or legally required.

Strategic Implications: Expanding Fixed Income and Equity Offerings

First Eagle, an independent investment manager with a 160-year legacy and $176 billion in assets under management as of September 2025, views the acquisition as a move to further enhance its traditional fixed income and U.S. equity strategies. This complements the firm’s existing capabilities and underlines the current industry trend of consolidation to drive broader distribution and new products.

What’s Next for Shareholders and Clients?

The offer delivers immediate value for shareholders but requires their formal approval before proceeding. If the transaction is finalized, existing clients of both firms can expect greater resources, stability, and expanded offerings without disruption to core teams or processes. Until the deal closes, investors should be aware of possible impacts on DHIL’s share liquidity, the cessation of dividends, and the uncertain outcome of the ongoing “go-shop” solicitation period.

Key Takeaway: Rare 49% Premium, Preserved Team, and Broader Platform—But Approval Still Needed

The announced all-cash deal provides certainty and a premium rarely seen in asset manager acquisitions. While risks and contingencies remain, particularly pending regulatory and shareholder approvals, the combination positions both firms for scale and client service. Investors will want to monitor for further developments, particularly regarding alternative bids during the “go-shop” window and updates on regulatory or shareholder milestones.

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