Franklin Templeton Agrees To Buy Legg Mason For $4.5B

Franklin Resources agreed to buy rival asset manager Legg Mason for US$4.5 billion in cash, a deal that could help two big players in an industry that is under pressure from shifting investor tastes, reported the Wall Street Journal. 

The companies announced Tuesday, February 18, that Legg Mason shareholders will receive US$50 a share, a 23% premium above where the stock closed on Friday. Franklin also assumes about US$2 billion in Legg Mason debt. 

The combined company will manage some US$1.5 trillion in assets under management, “well-balanced” between individual investors and pensions and other large institutions. The companies expect to close the deal by the third quarter this year.

Legg Mason owns a portfolio of nine investment managers that operate under their own brands, including bond specialist Western Asset Management and stock picker ClearBridge Investments.

In announcing their agreement, Franklin stated it would “preserve the autonomy of Legg Mason’s affiliates” and their distinct brand names.

Full Content: Wall Street Journal

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