Blackstone acquiring GSO Capital Partners for as much as $930 million

NEW YORK -- Asset management firm Blackstone Group LP said Thursday it will acquire GSO Capital Partners LP for as much as $930 million and its board of directors approved a $500 million share repurchase program.

Blackstone will pay $620 million up front in cash and stock, and up to an additional $310 million over the next five years based on meeting certain earnings targets.

GSO is an alternative asset manager, specializing in leveraged finance. It currently has about $10 billion under management. With the acquisition, Blackstone's alternative asset management business will have more than $21 billion under management.

Blackstone is repurchasing stock, in part to offset the issuance of new stock for the GSO acquisition.

Based on Wednesday's closing price of $18.10, Blackstone would be able to repurchase up about 27.6 million shares out outstanding stock.