Amundi and Victory Capital announce plan to establish a strategic
partnership
Amundi and Victory Capital announce plan
to establish a strategic partnership:
- Amundi US to combine into Victory Capital
- Amundi to become a strategic shareholder of Victory
Capital
- Reciprocal 15-year exclusive distribution
agreements
Paris (France) & San Antonio (Texas,
United-States) 16 April 2024, 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.
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 AmundiAmundi, 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
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.
Amundi
Press contacts:
Natacha
Andermahr Tel. +33 1 76 37 86
05natacha.andermahr@amundi.com
Corentin HenryTel. +33 1 76 36 26
96corentin.henry@amundi.comGeoff Smith
Amundi USTel. +1 617 422
4758Geoff.Smith@amundi.com
Investor contacts:Cyril Meilland,
CFATel. +33 1 76 32 62
67cyril.meilland@amundi.com
Thomas LapeyreTel. +33 1 76 33 70
54thomas.lapeyre@amundi.com
Victory Capital
Press contact: Jessica
DavilaTel. +1 210-694-9693Jessica_davila@vcm.com
Investor contact:Matthew Dennis,
CFATel. +1 216-898-2412mdennis@vcm.com
* * *
1 Source: IPE “Top 500 Asset Managers” published
in June 2023, based on assets under management as at 31/12/20222
Amundi data as at 31/12/20233 Boston, Dublin, London, Milan, Paris
and Tokyo
- Press Release Amundi and Victory Capital announce plan to
establish a strategic partnership
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