US-based asset manager Franklin Templeton has wrapped up its previously announced takeover of rival Legg Mason, creating a $1.4trn investment manager.
The all-cash deal, announced this February, is worth $4.5bn.
Franklin Templeton Legg Mason transaction details
Franklin Templeton paid $50 per share for Legg Mason stock and took on nearly $2bn of Legg Mason’s debt.
The merged business will be based in San Mateo, California, and operate as Franklin Templeton.
It is said to have “well balanced” institutional and retail client AUM.
The deal is said to make Franklin Templeton one of the world’s largest independent, specialised global investment managers and expand its presence across key geographies.
Franklin Templeton said that the purchase will offer “notable added leadership and strength” in core fixed income, equities as well as alternatives and strengthen its multi-asset solutions capabilities.
The specialist investment managers’ differentiated investment strategies will remain unchanged.
The deal was cleared by Legg Mason shareholders in May 2020, with over 99% of them voting in favour of the transaction.
Franklin Templeton president and CEO Jenny Johnson said that the acquisition marks the “largest and most significant” deal in the history of the firm.
Johnson noted: “This acquisition unlocks substantial value and growth opportunities driven by greater scale, diversity and balance across investment strategies, distribution channels and geographies.
“Our combined firm is aligned in terms of culture and our shared focus on delivering strong investment results for our valued clients.”