Amundi and Victory Capital sign a definitive agreement to become strategic partners
9 JUL, 2024
By Jose Luis Palmer from RankiaPro Europe
Amundi announces today that it has reached a definitive agreement with Victory Capital for the previously announced transaction. The agreement is in line with the Memorandum of Understanding announced on April 16, 2024:
- Amundi US will be combined with Victory Capital;
- Amundi will become a strategic shareholder of Victory Capital with an economic participation of 26.1%;
- Both parties have entered into 15-year distribution and service agreements, which will be effective upon the closing of the transaction.
Details of the distribution and service agreement
According to these distribution and service agreements, Amundi will be the distributor of active wealth management products manufactured in the United States by Victory Capital outside the United States. Furthermore, Amundi will become the provider of non-US manufactured products for Victory's distribution in the United States.
Amundi expects that this transaction, which does not include any cash consideration, will result in a significant increase in the contribution of US operations to its results, leading to a low single-digit increase in Amundi's adjusted net income and EPS.
The transaction is subject to customary closing conditions and is expected that it will be completed at the end of the fourth quarter of 2024 or the beginning of 2025.
The transaction will allow Amundi to strengthen its presence in the United States through a broader investment and distribution platform. It will also provide Amundi's clients worldwide with access to a wider range of high-performance US investment solutions. Thanks to this transaction, Amundi will become a strategic shareholder in a US-based wealth management company, characterized by a solid track record of development. This is a compelling proposition for our clients and our employees. It is also a value-creating agreement for our shareholders.
Valérie Baudson, Chief Executive Officer of Amundi
Financial and legal consultants
Ardea Partners acts as a financial consultant and Cleary Gottlieb Steen & Hamilton LLP and Dechert LLP provide legal advice to Amundi in relation to this transaction.
