- Amundi US to combine into Victory Capital
- Amundi to become a strategic shareholder of Victory
Capital
- Reciprocal 15-year exclusive distribution
agreements
Amundi and Victory Capital (Nasdaq: VCTR) are announcing today
that they have signed a Memorandum of Understanding to combine
Amundi US into Victory Capital, for Amundi to become a strategic
shareholder of Victory Capital, and to establish long-term global
distribution agreements. The proposed transaction would create a
broader US investment platform for clients of both firms, provide
Amundi with access to a wider set of US-managed capabilities, and
expand worldwide distribution for Victory Capital.
The proposed transaction would benefit clients of both firms
with a broader range of asset classes including actively managed
fixed income, equity, and multi-asset investment strategies offered
through a variety of investment vehicles including separately
managed accounts, ETFs, mutual funds, UCITs, collective investment
trusts, and model portfolios.
Victory Capital is a fast growing, diversified US-based asset
management firm with $175bn of total client assets, and a proven
acquisition track record. The company’s differentiated platform
preserves the investment autonomy of a variety of independent
investment teams, all of whom leverage the benefits of a fully
integrated, centralized operating and distribution platform.
Amundi US currently manages $104bn of assets across a broad
array of asset classes, including US and global equity, fixed
income and multi-asset investment capabilities for individuals and
institutions worldwide. Amundi US leverages Amundi’s expansive
international distribution footprint, managing a significant amount
of assets and portfolios on behalf of non-US retail and
institutional clients.
The addition of Amundi US as Victory Capital’s largest
Investment Franchise would meaningfully enhance Victory Capital’s
scale, expand its global client base, and further diversify its
investment capabilities, given Amundi US's broad investment
capabilities and strong long-term investment performance.
Under the proposed transaction:
- Amundi US would be combined into Victory Capital in exchange
for a 26.1% economic stake for Amundi in Victory Capital, with no
cash payment involved. Amundi would become a strategic shareholder
of Victory Capital with two of its representatives joining the
Victory Capital Board of Directors when the transaction
closes.
- Both parties would simultaneously enter into 15-year reciprocal
distribution agreements.
Under these proposed distribution agreements:
- Amundi would be the distributor of Victory Capital’s investment
offering outside of the US. This would allow Victory Capital to
further expand its reach beyond the US through Amundi’s global
client base, which would benefit from Victory Capital’s deep
investment expertise and strong investment performance track record
across a wider range of US-manufactured solutions.
- Victory Capital would become the distributor of Amundi’s non-US
manufactured products in the US. As a result, Amundi would gain
access to an expanded distribution platform in the US, while
providing Victory Capital’s clients with its wide range of
high-performing non-US investment capabilities.
The proposed transaction would enable both parties to further
their respective strategic goals:
- It would allow Amundi to strengthen its access to the US market
via a larger US investment and distribution platform, as well as to
provide Amundi’s clients with access to a broader and even more
differentiated range of US investment solutions;
- It would enable Victory Capital to strategically extend its
platform with the addition of its largest Investment Franchise,
which would meaningfully expand and diversify its client base both
in the US and outside the US. It also would present Victory Capital
with a unique opportunity to sell the combined Victory Capital and
Amundi US strategies to non-US clients through Amundi’s entire
global distribution network and joint ventures. Victory Capital’s
clients would benefit from expanded US and non-US investment
capabilities and products in complementary asset classes.
As contemplated, the transaction is expected to be accretive for
the shareholders of both Victory Capital and Amundi, increasing
adjusted net income and earnings per share for both companies.
The parties are working toward definitive agreement, which is
expected to be announced by the end of the second quarter.
About this opportunity, Valérie Baudson, Chief Executive
Officer of Amundi, commented: “The proposed transaction with
Victory Capital is a unique opportunity to strengthen our presence
in the US, while becoming a strategic shareholder in a reputable US
based asset management firm with an excellent track record of
growth. It would expand our access to top-performing US investment
strategies for the benefit of our clients globally. Additionally,
Amundi would greatly benefit from expanded distribution strength in
the US market. The combination would provide a significant catalyst
for growth for Amundi. Overall, this is a compelling proposition
for our clients and our employees; it would also be a
value-creating deal for our shareholders with significant prospects
for both revenue growth and synergies.”
David Brown, Chairman and Chief Executive Officer of Victory
Capital, added: “This transaction would benefit the clients,
employees, and shareholders of both organizations. Strategically,
bringing the Amundi U.S. business on to our platform increases our
size and scale, adds new investment capabilities, and further
strengthens our U.S. distribution with the addition of new talent
and relationships. At the same time, the distribution agreement
would immediately position our products for success through
Amundi’s extensive and effective distribution channels throughout
the world. Financially, the transaction would create shareholder
value, be accretive to earnings, and increase our financial
flexibility. Moreover, having Amundi as a strategic shareholder in
our firm would strengthen our alignment on the distribution
agreement and establish the foundation for an enduring and mutually
beneficial long-term relationship.”
The Memorandum of Understanding is non-binding on the parties.
As with any negotiation, there is no certainty that these
negotiations will result in a definitive agreement. The ultimate
completion of a transaction would remain subject to conditions,
including regulatory approvals.
Conference Call, Webcast and Slide Presentation
Victory Capital will host a conference call this morning, April
16, 2024, at 8:00 a.m. ET to discuss the agreement. Analysts and
investors may participate in the question-and-answer session. A
live, listen-only webcast will also be available via the investor
relations section of the Company’s website at https://ir.vcm.com.
Prior to the call, supplemental materials will be available on the
investor relations section of Victory Capital’s website at
https://ir.vcm.com before the conference call begins. For anyone
who is unable to join the live event, an archive of the webcast
will be available for replay shortly after the call concludes.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements within
the meaning of applicable U.S. federal and non-U.S. securities
laws. These statements may include, without limitation, any
statements preceded by, followed by or including words such as
“target,” “believe,” “expect,” “aim,” “intend,” “may,”
“anticipate,” “assume,” “budget,” “continue,” “estimate,” “future,”
“objective,” “outlook,” “plan,” “potential,” “predict,” “project,”
“will,” “can have,” “likely,” “should,” “would,” “could” and other
words and terms of similar meaning or the negative thereof and
include, but are not limited to, statements regarding the proposed
transaction and the outlook for Victory Capital’s or Amundi’s
future business and financial performance. Such forward-looking
statements involve known and unknown risks, uncertainties and other
important factors beyond the Victory Capital’s and Amundi’s control
and could cause Victory Capital’s and Amundi’s actual results,
performance or achievements to be materially different from the
expected results, performance or achievements expressed or implied
by such forward-looking statements.
Although it is not possible to identify all such risks and
factors, they include, among others, the following: the fact that
the Memorandum of Understanding is non-binding and there is no
certainty that the negotiations will result in definitive
agreements on the anticipated timeline, if at all, or that the
currently contemplated terms will not change; risks that conditions
to closing will fail to be satisfied and that the transaction will
fail to close on the anticipated timeline, if at all; risks
associated with the expected benefits, or impact on the Victory
Capital’s and Amundi’s respective businesses, of the proposed
transaction, including the ability to achieve any expected
synergies; and other risks and factors relating to Victory
Capital’s and Amundi’s respective businesses contained in their
respective public filings
About Amundi
Amundi, the leading European asset manager, ranking among the
top 10 global players1, offers its 100 million clients - retail,
institutional and corporate - a complete range of savings and
investment solutions in active and passive management, in
traditional or real assets. This offering is enhanced with IT tools
and services to cover the entire savings value chain. A subsidiary
of the Crédit Agricole group and listed on the stock exchange,
Amundi currently manages more than €2 trillion of assets2.
With its six international investment hubs3, financial and
extra-financial research capabilities and long-standing commitment
to responsible investment, Amundi is a key player in the asset
management landscape.
Amundi clients benefit from the expertise and advice of 5,400
employees in 35 countries.
Amundi, a trusted partner, working every day in the interest
of its clients and society.
www.amundi.com LinkedIn Twitter Facebook
About Victory Capital
Victory Capital is a diversified global asset management firm
with total assets under management of $170.3 billion, and $175.5
billion in total client assets, as of March 31, 2024. The Company
employs a next-generation business strategy that combines boutique
investment qualities with the benefits of a fully integrated,
centralized operating and distribution platform.
Victory Capital provides specialized investment strategies to
institutions, intermediaries, retirement platforms and individual
investors. With 11 autonomous Investment Franchises and a Solutions
Business, Victory Capital offers a wide array of investment
products and services, including mutual funds, ETFs, separately
managed accounts, alternative investments, third-party ETF model
strategies, collective investment trusts, private funds, a 529
Education Savings Plan, and brokerage services.
Victory Capital is headquartered in San Antonio, Texas, with
offices and investment professionals in the U.S. and around the
world. To learn more please visit www.vcm.com or follow Victory
Capital on Facebook, Twitter, and LinkedIn.
________________________________ 1 Source: IPE “Top 500 Asset
Managers” published in June 2023, based on assets under management
as at 31/12/2022 2 Amundi data as at 31/12/2023 3 Boston, Dublin,
London, Milan, Paris and Tokyo
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240415879655/en/
Amundi Press contacts: Natacha Andermahr
Tel. +33 1 76 37 86 05 natacha.andermahr@amundi.com
Corentin Henry Tel. +33 1 76 32 26 96
corentin.henry@amundi.com
Geoff Smith Amundi US Tel. +1 617 422 4758
Geoff.Smith@amundi.com
Investor contacts: Cyril Meilland, CFA Tel. +33 1
76 32 62 67 cyril.meilland@amundi.com
Thomas Lapeyre Tel. +33 1 76 33 70 54
thomas.lapeyre@amundi.com
Victory Capital Press contact: Jessica
Davila Tel. +1 210-694-9693 Jessica_davila@vcm.com
Investor contact: Matthew Dennis, CFA Tel. +1
216-898-2412 mdennis@vcm.com
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