Franklin Templeton to Acquire Putnam Investments From Great-West Lifeco
31 May 2023 - 10:44PM
Dow Jones News
By Dean Seal
Asset manager Franklin Templeton has agreed to acquire Putnam
Investments from the Canadian financial company Great-West
Lifeco.
Great-West Lifeco said Wednesday morning that the potential
transaction consideration and retained value of the deal is
estimated to be between $1.7 billion and $1.8 billion.
Franklin Templeton will pay an upfront consideration of $950
million to $1 billion, consisting of 33.33 million of its shares at
closing and $100 million in cash six months after closing.
The asset manager may then pay up to $375 million between three
and seven years after the deal closes based on the growth of a
newly formed strategic partnership with Great-West Lifeco and Power
Corporation of Canada to distribute Franklin Templeton products to
clients, distribution partners and shareholders.
As part of the transaction, Great-West Lifeco will retain
PanAgora, its Boston-based quantitative asset manager, and realize
the value of Putnam's seed capital, which is estimated to be worth
$375 million to $425 million after closing adjustments.
The transaction is expected to close in the fourth quarter.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
May 31, 2023 08:29 ET (12:29 GMT)
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