Fund management firms Henderson Global Investors and Janus Capital have agreed an all-share merger to form a company managing more than $320bn in assets and a combined market capitalisation of $6bn.
The merger will involve a share exchange in which each Janus share will be exchanged for 4.719 newly issued shares in Henderson, the firms said in a joint statement released today.
Henderson and Janus shareholders are expected to own approximately 57% and 43% respectively. The enlarged company will apply to list on the New York Stock Exchange as its primary listing and retain Henderson’s Australian listing, while giving up its London slot, where Henderson is a FTSE 250-listed company.
The combined company, which will be called Janus Henderson Global Investors, will be managed by a newly appointed executive committee, whose members will report jointly to co-CEOs Dick Weil, from Janus Capital, and Andrew Formica, from Henderson.
The merger is expected to increase the companies’ distribution strength and coverage in markets such as the US, Europe, Australia, Japan and the UK, as well as a growing presence in Asia-Pacific, the Middle East and Latin America.
$110m annual net cost savings
The companies are targeting annual run-rate net cost savings of at least $110m weighted to the first 12 months following completion and expected to be fully realized three years post completion.
Cost synergies are expected to arise from the consolidation of overlapping functions and from non-compensation expenses, such as rent, IT, legal and professional costs.
The merger is currently expected to close in the second quarter of 2017, subject to shareholder and regulatory approvals.