Amundi and Victory Capital have entered into a memorandum of understanding to combine Amundi US into Victory Capital, with Amundi becoming a strategic shareholder of Victory Capital. This proposed transaction would give Amundi a 26.1% economic stake in Victory Capital without any cash payment involved. Amundi would also have two representatives joining the Victory Capital board of directors upon the transaction's closure.
Currently, Victory Capital manages $175 billion of total client assets, and with the addition of Amundi US, it would significantly enhance Victory Capital’s scale, expand its global client base, and further diversify its investment capabilities.
Amundi US currently manages $104 billion 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. The proposed 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.
As part of the transaction, 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, while Victory Capital would become the distributor of Amundi’s non-US manufactured products in the US.
Valérie Baudson, Chief Executive Officer of Amundi, stated that the proposed transaction with Victory Capital is a unique opportunity to strengthen the company's presence in the US, while becoming a strategic shareholder in a reputable US-based asset management firm with an excellent track record of growth.
David Brown, Chairman and Chief Executive Officer of Victory Capital, commented that the transaction would benefit the clients, employees, and shareholders of both organizations. He highlighted that bringing the Amundi US business onto their platform increases their size and scale, adds new investment capabilities, and further strengthens their US distribution with the addition of new talent and relationships.
The parties are working toward a definitive agreement, which is expected to be announced by the end of the second quarter. Following these announcements, the company's shares moved -0.7%, and are now trading at a price of $44.29. If you want to know more, read the company's complete 8-K report here.
