Commenting on the transaction, Raymond L. McFeetors, President and Chief Executive Officer of Great-West Lifeco Inc. said: “The transaction gives us a strong presence in the growing U.S. retail and institutional investment management markets and substantially strengthens our competitive position in international markets including Europe and Japan. It complements our strong and growing presence in the U.S. retirement savings market.”
Last year Great-West, which has been on something of an acquisition tear in the US recordkeeping market, scooped up the 401(k) retirement plan business of U.S. Bank (see Great-West Sweeps Up More 401(k) Business ) and MetLife (see Great-West to Acquire MetLife 401(k) and DB Business ). Mercer HR Services will continue to provide services for Putnam’s 401(k) business, according to the release.
The deal will take place for an agreed upon purchase price of $3.9 billion, the same price that emerged in late December reports that a deal was imminent (see MMC Sale of Putnam Could be Good News to Shareholders ). The transaction is expected to close by the middle of the year, and includes Putnam’s interest in PanAgora Asset Management, which will continue to operate as a separate Putnam subsidiary, according to a press release.
Putnam will remain headquartered in Boston and retains its brand, operations, personnel, and offices. Putnam's senior team, including investment and business professionals, remains in place and continues to be led by Putnam President and Chief Executive Officer Charles E. Haldeman, Jr., according to the firm.
"Putnam was fortunate to have a number of interested purchasers," noted Haldeman. "We are joining the Power Financial group because it is in the best long-term interests of our investors, clients, financial advisors, strategic partners, and employees. This new relationship provides for the greatest degree of continuity, enabling us to continue our mission of taking care of other people's money by providing consistent, dependable, and superior investment performance over time."
R. Jeffrey Orr, President and Chief Executive Officer of Power Financial Corporation noted that "Putnam's leadership team will continue to manage Putnam as a separate business, as is the practice with other companies in our group. We place a high value on retaining Putnam professionals and staff to assure the ongoing stability of the organization and the confidence of its clients and consultants."
Power Corp. is Canada's biggest mutual-fund operator via its majority ownership of IGM Financial Inc. IGM has run mutual funds for more than 75 years, though for much of that period it was known as Investors Group. It joined forces with Mackenzie Financial in April 2001.
More on the acquisition can be found HERE