Amundi, a French asset management company, announced on Tuesday that it has finalized an agreement with Victory Capital Holdings, Inc. (VCTR), reinforcing its previously declared strategic investment in Victory Capital. Notably, the transaction does not involve any cash consideration.
According to the agreement, Amundi US will merge with Victory Capital, and Amundi will acquire a 26.1 percent economic stake, becoming a strategic shareholder in Victory Capital.
Valerie Baudson, CEO of Amundi, stated, "This transaction will enable Amundi to bolster its presence in the US through an expanded investment and distribution platform. Furthermore, it will offer Amundi's global clients access to a wider range of high-performing US investment solutions."
The deal is anticipated to result in a low single-digit increase in Amundi's adjusted net income and earnings per share.
Both companies have signed 15-year distribution and services agreements, which will come into effect once the transaction is completed.
Following the transaction, Amundi will distribute Victory Capital's US-manufactured active asset management products outside the US. Additionally, the French company will supply non-American manufactured products for Victory's distribution within the US.
