Franklin Resources To Purchase Legg Mason, Forming $1.5 Trillion AUM Giant

Franklin Resources To Purchase Legg Mason, Forming $1.5 Trillion Assets Under Management Giant

Franklin Resources Inc. announced Tuesday that it has entered into a definitive agreement to acquire Legg Mason, Inc. for $50 per share, or about $4.5 billion, in an all-cash deal and that it would assume approximately $2 billion of Legg Mason’s outstanding debt, according to Bloomberg, confirming an earlier leak from the WSJ.


“This is a landmark acquisition for our organization that unlocks substantial value and growth opportunities driven by greater scale, diversity and balance across investment strategies, distribution channels and geographies,” said Greg Johnson, executive chairman of the Board of Franklin Resources, Inc. “Our complementary strengths will enhance our strategic positioning and long-term growth potential, while also delivering on our goal of creating a more balanced and diversified organization that is competitively positioned to serve more clients in more places.”

San Mateo, California-based Franklin, has $698 billion in assets, and Baltimore-based Legg Mason manages about $804 billion, would boost assets under management for Franklin Resources, owner of investment manager Franklin Templeton, to a whopping $1.5 trillion after the deal closes.

Legg Mason shares have jumped up to the 50-handle in pre-market, or up about +23%.