Amundi Acquires 26.1% Stake in Victory Capital

Amundi Acquires 26.1% Stake in Victory Capital

Amundi and Victory Capital have finalized a strategic partnership agreement, aligning with their previously announced Memorandum of Understanding from April 16, 2024. Under the terms of the agreement, Amundi will acquire a 26.1% economic stake in Victory Capital. The companies have also agreed to reciprocal 15-year distribution and services agreements, which will become effective upon the closing of the transaction.

Amundi will distribute Victory Capital’s US-manufactured active asset management products outside the US, while Victory Capital will handle the distribution of Amundi’s non-US manufactured products within the US. The transaction, which does not involve any cash consideration, is expected to close in late 2024 or early 2025, pending regulatory approvals and client consents. Amundi anticipates a significant increase in the contribution from its US operations, projecting a low single-digit accretion to its adjusted net income and earnings per share.

Victory Capital’s Chairman and CEO, David Brown, noted that the integration of Amundi US, formerly Pioneer Investments, into Victory Capital's platform will provide significant strategic benefits, including an estimated $100 million in annual cost savings within the first year of closing, with further expense synergies expected thereafter. This partnership aims to expand both companies' global reach and enhance their product offerings.

Summary