Investment management firms Janus Capital and Henderson Group have agreed to an all-stock merger, to create a global active asset manager with over $320bn in assets.
The combined group will have a market capitalisation of about $6bn.
The combination of the two are expected to boost the companies’ distribution strength and coverage in key markets, including the US, Europe, Australia, Japan and the UK, and a growing presence in the Asia-Pacific region, the Middle East and Latin America.
The combined entity will be known as Janus Henderson Global Investors, in which Henderson and Janus shareholders will own about 57% and 43% shares respectively.
The deal is expected to be wrapped up in the second quarter of 2017, subject to shareholder and regulatory approvals.
Janus CEO Dick Weil said: “This is a transformational combination for both organizations. Janus brings a strong platform in the U.S. and Japanese markets, which is complemented by Henderson’s strength in the U.K. and European markets.
“The complementary nature of the two firms will facilitate a smooth integration and create an organization with an expanded client-facing team and product suite, greater financial strength, and enhanced talent, benefiting clients, shareholders and employees.”
Henderson CEO Andrew Formica said: “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.”
The merged entity will be managed by a newly appointed executive committee whose members will report jointly to co-CEOs Weil and Formica.