Amundi and Victory Capital announce an agreement to combine their activities in the United States

Amundi and Victory Capital announce today that they have signed a Memorandum of Understanding to combine Amundi US into Victory Capital, so that Amundi becomes a strategic shareholder of Victory Capital and to establish long-term global distribution agreements.

The proposed transaction is expected to be announced by the end of the second quarter.

Benefits for customers

This would benefit the customers of both companies with a wider range of asset classes, including actively managed fixed income investment strategies, equities and multi-asset assets offered through a variety of investment vehicles, including separately managed accounts, ETFs, mutual funds, UCITs, collective investment funds and model portfolios.

This transaction would be beneficial for the customers, employees and shareholders of both organizations. Strategically, the inclusion of Amundi's business in the United States on our platform would increase our size and scale, add new investment capabilities and further strengthen our distribution in the United States with the addition of new talents and relationships. At the same time, the distribution agreement would immediately position our products for success through Amundi's vast and effective distribution channels worldwide. From a financial perspective, the transaction would create value for shareholders, be accretive to earnings and increase our financial flexibility. In addition, having Amundi as a strategic shareholder in our company would strengthen our alignment on the distribution agreement and lay the groundwork for a long-term, mutually beneficial relationship.

David Brown, President and CEO of Victory Capital.

Benefit for both companies

Furthermore, the addition of Amundi US as the largest investment franchise of Victory Capital would significantly enhance Victory Capital's scale, expand its global customer base and further diversify its investment capabilities, given the broad investment capabilities of Amundi US and its strong long-term investment performance.

The proposed transaction with Victory Capital is a unique opportunity to strengthen our presence in the United States, while simultaneously becoming a strategic shareholder of a renowned asset management company based in the United States, with an excellent track record of growth. It would expand our access to the most performing US investment strategies for the benefit of our global clients. In addition, Amundi would derive considerable benefits from the increased distribution strength in the US market. The combination would provide a significant growth catalyst for Amundi. Overall, it is a compelling proposal for our clients and our employees; it would also be a value-creating deal for our shareholders, with significant prospects for revenue growth and synergies.

Valérie Baudson, CEO of Amundi