Magellan Financial Group's (ASX:MFG) board unanimously concluded the acquisition of Barrenjoey Capital Partners was in the best interests of Magellan shareholders and recommended that they vote in favor of the issue of the consideration shares to fund the proposed merger at the extraordinary general meeting, Chairman Andrew Formica said in a letter to shareholders, according to a Friday ASX filing.

Magellan will issue 106.8 million shares to the shareholders of Barrenjoey at completion as consideration for the merger, representing an around 58% increase in the total number of Magellan ordinary shares on issue.

The merger will not change Magellan's existing partnership with Vinva Investment Management and FinClear Holdings, both of which will continue to operate independently, Formica added.

After the completion of the merger, Magellan shareholders will hold around 63.5% of the total number of Magellan ordinary shares on issue, with the Barrenjoey parties holding around 31.7%, and Barclays holding around 4.9%.

Magellan's shares jumped nearly 5% in recent trading on Friday.