First Eagle to Buy Diamond Hill for $175 a Share in $473M All-Cash Deal

Diamond Hill Investment Group, Inc. (NASDAQ:DHIL) ("Diamond Hill" or "Company"), a boutique investment management firm with a long-term, valuation-disciplined approach across multiple asset classes, and First Eagle Investments ("First Eagle"), an independent, privately owned, fundamentally driven investment management firm, today announced that they have entered into a definitive agreement under which First Eagle will acquire all outstanding shares of Diamond Hill for $175 per share in an all-cash transaction valuing the Company at approximately $473 million. The purchase price represents a 49% premium over Diamond Hill's closing share price of $117.48 on December 10, 2025, and a 44% premium over the Company's 30-day volume-weighted average price (VWAP).

First Eagle's investment capabilities span equity, fixed income, alternative credit, and multi-asset strategies. The acquisition would markedly increase First Eagle's footprint in traditional fixed income, which has been an area of significant growth for Diamond Hill in recent years. Diamond Hill's US-focused multi-cap equity platform represents a strong complement to First Eagle's existing Global Value and Small Cap teams. Following the close of the transaction, Diamond Hill will maintain its headquarters in Columbus and operate under its existing brand, with no changes to its investment philosophy or process.

"Our clients expect First Eagle to be a thoughtful curator of superb and differentiated investment strategies. The acquisition of Diamond Hill is the next step in First Eagle's ongoing effort to expand the range of investment solutions we offer to meet clients' needs," said Mehdi Mahmud, President and CEO of First Eagle. "The cultural fit between our firms – fiduciary mindset, commitment to investment excellence, and long-term orientation – couldn't be better. All of our clients will be better served through this combination."

"Our clients have always been at the center of everything we do, and we are proud of the growth and partnerships we have created over our 25-year history," said Austin Hawley, Portfolio Manager and Board Director, and Henry Song, Portfolio Manager at Diamond Hill. "This partnership with First Eagle is an opportunity to accelerate the evolution of our strong foundation. We 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. We are excited to continue serving our clients with our existing investment teams and look forward to the new opportunities this partnership will create."

"This partnership is a testament to the strength and resilience of our business and delivers immediate value to our shareholders," said Heather Brilliant, CEO of Diamond Hill. "Joining First Eagle, whose 160-year history reflects a deep commitment to client outcomes, will position Diamond Hill for continued success over the long term. We are incredibly proud of what our team has accomplished and look forward to building an even stronger future as part of First Eagle."

Pro forma for the transaction, First Eagle's total Assets Under Management and Assets Under Advisement are approximately $208 billion as of September 30, 2025.

Transaction Details

The transaction, which was unanimously approved by the Board of Directors of Diamond Hill, is expected to close by the third quarter of 2026, subject to the satisfaction of customary closing conditions, including approval by Diamond Hill's common shareholders, mutual fund shareholder-related approvals, and regulatory approvals. The transaction has no financing contingencies. As part of the agreement, Diamond Hill will not pay quarterly dividends through closing. Upon completion of the transaction, Diamond Hill shares will no longer trade on Nasdaq.