Franklin Templeton to Acquire Putnam Investments From Great-West Lifeco
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)
Copyright (c) 2023 Dow Jones & Company, Inc.-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Markets Brief: All Eyes On Inflation
-
5 Things We Learned From the Q1 Earnings Season
-
After Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
What’s Happening In the Markets This Week
-
Can the Fed Declare Victory on Inflation?
-
Alibaba Earnings: More Positive Outlook Despite Mixed Results
-
After Earnings and a 56% Rally In 2024, Is Arm Stock a Buy, a Sell, or Fairly Valued?
-
How Morningstar Rates Stocks
-
After Earnings, Is Disney Stock a Buy, a Sell, or Fairly Valued?
-
Home Depot Earnings: Macro Factors Pinch Demand, but Long-Term Outlook Intact
-
Tariffs On Chinese EVs Offer US Automakers a Chance to Capture Demand
-
The Best REITs to Buy
-
3 Hot Stocks to Buy That Still Look Undervalued