Franklin Templeton to Acquire Putnam Investments From Great-West Lifeco

By Dean Seal

Asset manager Franklin Templeton has agreed to acquire Putnam Investments from the Canadian financial company Great-West Lifeco.

Great-West Lifeco said Wednesday morning that the potential transaction consideration and retained value of the deal is estimated to be between $1.7 billion and $1.8 billion.

Franklin Templeton will pay an upfront consideration of $950 million to $1 billion, consisting of 33.33 million of its shares at closing and $100 million in cash six months after closing.

The asset manager may then pay up to $375 million between three and seven years after the deal closes based on the growth of a newly formed strategic partnership with Great-West Lifeco and Power Corporation of Canada to distribute Franklin Templeton products to clients, distribution partners and shareholders.

As part of the transaction, Great-West Lifeco will retain PanAgora, its Boston-based quantitative asset manager, and realize the value of Putnam's seed capital, which is estimated to be worth $375 million to $425 million after closing adjustments.

The transaction is expected to close in the fourth quarter.

Write to Dean Seal at [e-mail]

(END) Dow Jones Newswires

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