The Boston-based world cash administration agency Putnam Investments — which over the many years has been a staple in the neighborhood with its brand noticed at sports activities video games — has been offered to Franklin Templeton for $925 million, firm officers introduced on Wednesday.
Franklin Templeton has entered into an settlement to amass Putnam Investments from Great-West Lifeco, Inc., for about $925 million of primarily fairness consideration.
Founded in 1937 by George Putnam as one of many first balanced mutual funds, Putnam has places of work in Boston, London, Munich, Tokyo, Singapore and Sydney. The funding agency has $136 billion in belongings beneath administration, as of final month.
Following this sale, Putnam will nonetheless “maintain a significant presence in Boston, and Franklin Templeton is excited to establish a foothold in this important market,” an organization spokesperson mentioned on Wednesday.
“There will be continuity across Putnam’s investment teams, including portfolio management responsibilities, as well as ongoing use of the Putnam brand on key offerings,” the spokesperson added.
Franklin Templeton can pay about $825 million in inventory consideration up-front at closing and $100 million in money 180 days after closing for 100% of Putnam.
“Critical to this transaction is the strong alignment between our organizations,” Robert Reynolds, president and CEO of Putnam, mentioned in a press release. “We share a client-centric tradition, a core perception in energetic administration, a collaborative and research-based funding strategy, and a long-held dedication to elementary funding rules.
“We look forward to joining Franklin Templeton in this next phase of our growth, as we come together to serve our clients, upholding our commitment to them and their needs,” Reynolds added.
Great-West will present an preliminary long-term asset allocation of $25 billion to Franklin Templeton’s specialist funding managers inside 12 months of closing — with that quantity anticipated to extend over the subsequent a number of years.
Great-West will develop into a long-term strategic shareholder in Franklin Resources, Inc., with a couple of 6.2% stake.
“This is a compelling transaction for Franklin Templeton, and we are excited about the numerous opportunities that will be unlocked by this long-term strategic partnership with the Power Group of Companies including Great-West,” mentioned Jenny Johnson, president and CEO of Franklin Templeton. “Power and Great-West are world leaders throughout monetary companies, notably within the wealth, insurance coverage and retirement channels.
“With outstanding investment performance, Putnam will add complementary capabilities to our existing specialist investment managers to meet the varied needs of our clients and will increase Franklin Templeton’s defined contribution AUM (assets under management),” Johnson added. “We are pleased to welcome Great-West as a strategic investor, along with the impressive team at Putnam.”