Amundi announces 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^[1]:

• Amundi US will be combined with Victory Capital;
• Amundi will become a strategic shareholder of Victory Capital with a 26.1% 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, commented: “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^[2], and is expected to be completed late in the 4^th quarter of 2024 or early 2025.

Ardea Partners is acting as financial advisor and Cleary Gottlieb Steen & Hamilton LLP and Dechert LLP are providing legal counsel to Amundi in connection with this transaction.

Source: Amundi