Lincoln Announces Sale of Delaware Investments

August 19, 2009 ( - Lincoln Financial Group announced it has signed a definitive stock purchase agreement to sell ownership of Delaware Management Holdings, Inc. and its subsidiaries (also known by the marketing name of Delaware Investments) to Macquarie Group, a global provider of banking, financial, advisory, investment, and funds management services.

Delaware Investments will continue managing Lincoln Financial general account insurance assets under a long-term contract, and will provide additional sub-advisory services, according to the announcement.

“We believe the greatest opportunities for growth and differentiation for Lincoln Financial going forward are centered on our principal insurance and retirement businesses,” said Dennis R. Glass, President and CEO, Lincoln Financial Group. “This transaction will allow us to focus both management and capital resources on these core businesses.”

By close, Lincoln Financial expects that its distribution team for Delaware Investments’ funds and separately managed accounts will move from its wholesale distribution arm, Lincoln Financial Distributors, Inc., to Delaware Investments.

The announcement said Lincoln Financial expects to receive cash consideration of approximately $428 million, subject to certain closing adjustments. The transaction is expected to close on or around December 31, 2009, subject to regulatory approvals and other customary closing conditions.

The proceeds of the sale will be used for general corporate purposes, including potentially contributing to retiring a portion of the CPP preferred shares outstanding when it is appropriate to do so.

Delaware Management Company is a series of Delaware Management Business Trust, the investment adviser to Delaware Investments Arizona Municipal Income Fund, Inc. (VAZ), Delaware Investments Colorado Municipal Income Fund, Inc. (VCF), Delaware Investments National Municipal Income Fund (VFL), and Delaware Investments Minnesota Municipal Income Fund II, Inc. (VMM).

According to the announcement, in connection with the sale agreement, the Municipal Income Funds’ Boards of Trustees/Directors will meet to consider new investment management agreements between Delaware Management Company and the Municipal Income Funds and the submission of a proposal to the Municipal Income Funds’ shareholders to approve the new investment management agreements. The Municipal Income Funds will announce the Board’s determinations in a future press release.

Delaware Investments, an affiliate of Lincoln Financial Group, is a Philadelphia-based diversified asset management firm with more than $120 billion in assets under management as of June 30, 2009.