Mac-quarry

3 December 2020 By Jeffrey Goldfarb Follow @jgfarb

The Aussie financial conglomerate is buying asset manager Waddell & Reed for $1.7 bln in Shemara Wikramanayake’s first big deal since becoming CEO two years ago. It expands a business in her wheelhouse at a reasonable price. There is cleanup work to do, but it ticks enough boxes.

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Australian financial conglomerate Macquarie said on Dec. 3 it had agreed to buy U.S. asset manager Waddell & Reed for $1.7 billion in cash to expand and diversify its sources of revenue.

Macquarie is paying $25 a share for Waddell & Reed, a 47% premium to the $17.01 closing price on Dec. 2 in New York.

When the deal is completed, Macquarie said it would sell Waddell & Reed’s wealth management business to LPL Financial for $300 million plus excess net assets. The company expects the deal to close by mid-2021, subject to regulatory and shareholder approvals.

Waddell & Reed’s asset management business has about $68 billion under management and the wealth management business has about $63 billion under administration.

RBC advised Macquarie while JPMorgan and Wells Fargo advised Waddell & Reed.

Context News

Australian financial conglomerate Macquarie said on Dec. 3 it had agreed to buy U.S. asset manager Waddell & Reed for $1.7 billion in cash to expand and diversify its sources of revenue.

Macquarie is paying $25 a share for Waddell & Reed, a 47% premium to the $17.01 closing price on Dec. 2 in New York.

Waddell & Reed’s asset management business has about $68 billion under management and the wealth management business has about $63 billion under administration.

RBC advised Macquarie while JPMorgan and Wells Fargo advised Waddell & Reed.

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