Franklin Resources, Inc., a global investment management organization operating as Franklin Templeton, has agreed to acquire Legg Mason, Inc. for $4.5 billion or $50.00 per share of common stock in an all-cash transaction. The company will also assume approximately $2 billion of Legg Mason’s outstanding debt.
Legg Mason and its multiple investment affiliates collectively manage over $806 billion in assets as of January 31, 2020. With employees in over 30 countries, Franklin Templeton, the California-based company, has approximately $688 billion in assets under management as of January 31, 2020.
The combined business will manage more than $1.5 trillion in assets under management, the companies said on Tuesday.
“This is a landmark acquisition for our organization that unlocks substantial value and growth opportunities driven by greater scale, diversity and balance across investment strategies, distribution channels and geographies,” said Greg Johnson, executive chairman of the Board of Franklin Resources, Inc. “Our complementary strengths will enhance our strategic positioning and long-term growth potential, while also delivering on our goal of creating a more balanced and diversified organization that is competitively positioned to serve more clients in more places.”
Jenny Johnson, president and CEO of Franklin Templeton, said, “This acquisition will add differentiated capabilities to our existing investment strategies with modest overlap across multiple world-class affiliates, investment teams and distribution channels, bringing notable added leadership and strength in core fixed income, active equities and alternatives. We will also expand our multi-asset solutions, a key growth area for the firm amid increasing client demand for comprehensive, outcome-oriented investment solutions.”
Joseph A. Sullivan, chairman and CEO of Legg Mason, said, “The incredibly strong fit between our two organizations gives me the utmost confidence that this transaction will create meaningful long-term benefits for our clients and provide our shareholders with a compelling valuation for their investment. By preserving the autonomy of each investment organization, the combination of Legg Mason and Franklin Templeton will quickly leverage our collective strengths, while minimizing the risk of disruption. Our clients will benefit from a shared vision, strong client-focused cultures, distinct investment capabilities and a broad distribution footprint in this powerful combination.”