Transaction unlocks the value of Putnam, and facilitates the continued focus of Lifeco's U.S. strategy on retirement and personal wealth
Lifeco, Power, and Franklin Templeton will enter into a strategic partnership to drive value for all stakeholders
- Great-West Lifeco has agreed to sell Putnam Investments to Franklin Templeton, a leading at-scale and diversified global asset manager with a broad range of investment and distribution capabilities
- The transaction unlocks the value of Putnam Investments and facilitates the continued focus of Lifeco's U.S. strategy on retirement and personal wealth
- Great-West Lifeco will hold a 4.9% interest in Franklin Templeton on a long-term basis and will retain its controlling interest in PanAgora, a leading quantitative asset manager, complementing its ownership in other North American and European asset managers
- Great-West Lifeco to allocate initial US$25 billion of AUM to Franklin Templeton
WINNIPEG, MB, May 31, 2023 /PRNewswire/ - Great-West Lifeco Inc. ("Lifeco") (TSX: GWO) today announced that Franklin Resources, Inc. (NYSE: BEN), operating as Franklin Templeton, one of the world's largest independent and diversified asset managers, has agreed to acquire Putnam Investments from Lifeco. The total potential transaction consideration and retained value is estimated to be US$1.7-1.8 billion. Franklin Templeton will pay upfront consideration of US$950 million-1.0 billion, consisting of 33.33 million Franklin Templeton shares at closing and US$100 million in cash 6 months after closing, and up to US$375 million payable between 3 and 7 years after close, tied to the growth of the partnership. Lifeco will retain PanAgora, and realize the value of Putnam's seed capital, which, together with closing adjustments, are estimated to be worth US$375-425 million. Lifeco will also retain certain deferred tax assets related to Putnam.
Great-West Lifeco announces sale of Putnam Investments to Franklin Templeton (prnewswire.com)