Henderson Global Investors has announced plans to merge with Janus Capital to create a combined asset manager with AUM of $320bn.
In an announcement this morning, the firms said they had agreed a “merger of equals” to create a global active asset manager combining Janus’ US specialisation with Henderson’s experience in UK and Europe.
The move will create a group with AUM of more than US$320bn and a combined market capitalisation of approximately US$6bn.
This combined firm will be known as Janus Henderson Global Investors and will be co-run by the firms’ chief executives, Dick Weil and Andrew Formica, respectively.
The merger is expected to be completed in the second quarter of 2017, subject to shareholder and regulatory approval. It will be effected via a share exchange, with each share of Janus common stock exchanged for 4.7190 newly-issued shares in Henderson.
Janus Henderson Global Investors’ AUM by region on a pro forma basis will be approximately 54% US; EMEA 31% and the Pan Asian region 15%.
“Henderson and Janus are well-aligned in terms of strategy, business mix and most importantly a culture of serving our clients by focusing on independent, active asset management,” said Formica. “I look forward to working side-by-side with Dick, as we create a company with the scale to serve more clients globally, as well as the strength to meet their future needs and the growing demands of our industry.”
Weil added: “This is a transformational combination for both organisations. Janus brings a strong platform in the US and Japanese markets, which is complemented by Henderson’s strength in the UK and European markets. The complementary nature of the two firms will facilitate a smooth integration and create an organisation with an expanded client-facing team and product suite, greater financial strength, and enhanced talent, benefiting clients, shareholders and employees.”
Janus’ subsidiaries, INTECH and Perkins will be unaffected by the merger.
Henderson and Janus shareholders are expected to own about 57% and 43% respectively of Janus Henderson Global Investors’ shares on closing, based on the current number of shares outstanding.
Dai-ichi, the largest Janus shareholder, has committed to vote in favour of the merger. Post-merger, Dai-ichi will hold nearly 9% of the combined group and intends to further invest in the combined company to increase its ownership interest to at least 15%.
The combined group will apply for admission to trade on the NYSE as its primary listing, retaining Henderson’s existing listing on the ASX. It is expected to de-list from the London Stock Exchange, but will be headquartered in London.
