Amundi has announced that it has reached a definitive agreement with Victory Capital for their 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 a 26.1 per cent economic stake in Victory Capital; Both parties have entered into 15-year distribution and services agreements, which will be effective upon the closing of the transaction.
Under these distribution and services agreements, Amundi will be the distributor of Victory Capital’s US-manufactured active asset management products outside of the US. Additionally, Amundi will become the supplier of non-US manufactured products for Victory’s distribution in the US.
Valérie Baudson, Chief Executive Officer of Amundi, says: “The transaction will allow Amundi to strengthen its presence in the US via a larger US investment and distribution platform. It will also provide Amundi’s clients worldwide with access to a broader range of high-performing US investment solutions. Thanks to this transaction, Amundi will become a strategic shareholder in a US-based asset management firm with a consistent track record of development. This is a compelling proposition for our clients and our employees. It is also a value-creating deal for our shareholders.”
Amundi expects this transaction, which does not include any cash consideration, to result in a material increase in the contribution from US operations to its results, leading to a low single-digit accretion of the adjusted net income and EPS of Amundi.
The transaction is subject to customary closing conditions, and is expected to be completed late in the 4th quarter of 2024 or early 2025.
