Franklin Resources Makes Deal With Great-West Lifeco and Power Corporation of Canada
Posted on 06/05/2023
Investment Manager Franklin Resources (with subsidiaries included it is referred to as Franklin Templeton with combined US$ 1.53 trillion under management) has announced a new partnership that will achieve its goal of entering the insurance business with partner Power Corporation of Canada and North American insurer Great-West Lifeco.
Franklin Resources will acquire mutual fund company Putnam Investments from Great-West in a US$ 925 million deal consisting of primarily equity. Great-West will then have a 6.2% stake in Franklin Resources. Great-West will also allocate US$ 25 billion to Franklin Templeton and hike that amount in the coming years.
Jenny Johnson, President and CEO of Franklin Templeton said: “This is a compelling transaction for Franklin Templeton, and we are excited about the numerous opportunities that will be unlocked by this long-term strategic partnership with the Power Group of Companies including Great-West.”
Franklin Templeton will pay US$ 825 million in stock at close and US$ 100 million in cash in six months. Franklin Resources will issue 33.3 million shares of its common stock to Great-West. Franklin Templeton will pay up to US$ 375 million in contingent consideration depending on revenue growth targets.
Advisors
Ardea Partners LP served as lead financial advisor and Broadhaven Capital Partners LLC provided financial advice to Franklin Templeton. Willkie Farr & Gallagher LLP served as legal counsel.
