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Tuesday, February 18, 2020

-=Legg Mason (LM) to be acquired by Franklin Resources (BEN) for $50.00/share

  • Legg Mason (LM) has been driven by the increasingly challenging business prospects for actively-managed funds, which is an issue for many other companies in the space.

Legg Mason to be acquired by Franklin Resources (BEN) for $50.00/share in all-cash transaction
BEN states, "The acquisition of Legg Mason and its multiple investment affiliates, which collectively manage over $806 billion in assets as of January 31, 2020, will establish Franklin Templeton as one of the world's largest independent, specialized global investment managers with a combined $1.5 trillion in assets under management (AUM) across one of the broadest ranges of high-quality investment teams in the industry."
  • This transaction is expected to generate upper twenties percentage GAAP EPS accretion in Fiscal 2021 (based on street consensus earnings estimates for each company), excluding one-time charges, non-recurring and acquisition related expenses.
  • BEN will also assume approximately $2 billion of Legg Mason's outstanding debt.
  • This transaction is subject to customary closing conditions, including receipt of applicable regulatory approvals and approval by Legg Mason's shareholders, and is expected to close no later than the third calendar quarter of 2020.

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