Janus Capital Group and Henderson Group have announced an all-stock merger to create an entity with a combined market capitalisation of US$6 billion.
The merger was agreed upon unanimously by both companies’ board of directors, and will be effected through a share exchange in which Janus common stock will be traded for 4.719 shares in Janus Henderson Global Investors.
The new business will have over US$320 billion in assets under management, and current Janus chief executive Dick Weil – who will become co-CEO of Janus Henderson – described the move as “transformational”.
“Janus brings a strong platform in the US and Japanese markets, which is complemented by Henderson’s strength in the UK and European markets. The complementary nature of the two firms will facilitate a smooth integration,” he said.
The merger is expected to be completed by Q2 2017, subject to regulatory approvals, and will trade on the NYSE and ASX, with Henderson Group expecting to remove its listing from the LSE.
Dai-Ichi, Janus’ largest share-holder, will support the merger and will hold approximately 9 per cent of the combined group, a figure it intends to increase to 15 per cent of the company post-merger.
Janus’ subsidiary companies, INTECH and Perkins, will be unaffected by the decision to merge, and the chief executives of both subsidiaries will continue to report to their respective boards.