Franklin to Acquire Legg Mason in $4.5B Deal

Franklin Templeton announced it will acquire Legg Mason, Inc. for $4.5 billion, a combination that would put Franklin among the industry’s top asset managers with $1.5 trillion in assets under management. Jenny Johnson, president and CEO of Franklin Templeton, said in a press release, “This acquisition will add differentiated capabilities to our existing investment strategies with modest overlap across multiple world-class affiliates, investment teams and distribution channels, bringing notable added leadership and strength in core fixed income, active equities and alternatives. We will also expand our multi-asset solutions, a key growth area for the firm amid increasing client demand for comprehensive, outcome-oriented investment solutions.” Franklin Templeton said it will preserve the autonomy of Legg Mason’s affiliates, ensuring that their investment philosophies, processes and brands remain unchanged. Jenny Johnson will continue to serve as president and CEO, and Greg Johnson will continue to serve as executive chairman of the Board of Franklin Resources, Inc. There will be no changes to the senior management teams of Legg Mason’s investment affiliates. Global headquarters will remain in San Mateo, CA and the combined firm will operate as Franklin Templeton. EnTrust Global, a Legg Mason affiliate that provides alternative investment solutions, will not be a part of the combination. The transaction was approved by the boards of Franklin Resources, Inc. and Legg Mason, Inc. and is expected to close no later than the third calendar quarter of 2020.