Victory Capital proposes acquisition of Janus Henderson at $57.04 per share
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 15 hours ago
0mins
Should l Buy VCTR?
Source: seekingalpha
Victory Capital Holdings Inc's shares fell 7.88% as it crossed below the 5-day SMA amid broader market declines, with the Nasdaq-100 down 1.82% and the S&P 500 down 1.14%.
Victory Capital has proposed to acquire Janus Henderson for $57.04 per share, totaling approximately $740 million. The deal includes 0.350 shares of Victory Capital and $30 in cash per Janus Henderson share, reflecting confidence in Janus Henderson's growth potential. However, the market reacted negatively to the financing structure, leading to a decline in Victory Capital's shares.
This acquisition aims to enhance Victory Capital's market competitiveness and operational efficiency. Despite the current stock decline, the strategic implications of this deal could position Victory Capital favorably in the asset management industry.
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Analyst Views on VCTR
Wall Street analysts forecast VCTR stock price to fall
6 Analyst Rating
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 77.270
Low
68.00
Averages
72.00
High
78.00
Current: 77.270
Low
68.00
Averages
72.00
High
78.00
About VCTR
Victory Capital Holdings, Inc. is a diversified global asset management firm. The Company provides specialized investment strategies to institutions, intermediaries, retirement platforms and individual investors. With 11 autonomous investment franchises and a solutions platform, the Company offers an array of investment products, including actively and passively managed mutual funds, rules-based and active exchange traded funds (ETFs), institutional separate accounts, variable insurance products (VIPs), alternative investments, private closed end funds, and a 529 Education Savings Plan. Its strategies are also offered through third-party investment products, including mutual funds, third-party ETF model strategies, retail separately managed accounts and unified managed accounts. Its franchises and its solutions platform collectively manage a diversified set of 124 investment strategies. The Company's investment adviser is Victory Capital Management Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Victory Capital Proposes Acquisition of Janus Henderson Group
- Stock Surge: Janus Henderson Group (JHG) shares rose 5.7% to $53.02 in Thursday afternoon trading, reflecting market optimism regarding Victory Capital's (VCTR) acquisition proposal.
- Acquisition Proposal Details: Victory Capital has proposed to acquire JHG for $57.04 per share, consisting of $30 in cash and 0.350 shares of VCTR, indicating strong acquisition intent and market appeal.
- Competitive Acquisition Risks: Janus Henderson has already agreed to sell to Trian Fund Management and General Catalyst Group for $49 per share, with Trian holding 20.6% of JHG shares, meaning Victory's proposal faces complex shareholder voting challenges.
- Expected Synergies: Victory Capital estimates the acquisition will generate approximately $500 million in cost synergies, with gross leverage projected at 3.5x 2025 EBITDA excluding synergies and 2.6x including synergies, demonstrating manageable financial leverage.
See More
Janus Henderson in Spotlight Amid Heated Takeover Battle
- Acquisition Proposal: Victory Capital has made a bid of $57.04 per share for Janus Henderson, which includes $30.00 in cash and a fixed exchange ratio of 0.350 shares of Victory Capital common stock, representing a 37% premium over Janus Henderson's unaffected share price as of October 24, indicating the attractiveness and potential value of the acquisition.
- Shareholder Benefits: The proposal aims to provide substantial cash proceeds for Janus Henderson shareholders, who would own approximately 38% of the combined company with an enterprise value of around $16 billion, suggesting that the acquisition could create long-term value for shareholders.
- Market Reaction: Janus Henderson's stock rose 5.74% to $53.03 on Thursday, nearing its 52-week high, reflecting a positive market response to the acquisition proposal and indicating investor optimism about future growth prospects.
- Analyst Ratings: Despite the stock's rise, analysts maintain a Hold rating on Janus Henderson with an average price target of $44.23, reflecting a cautious outlook on its future financial performance, especially with the upcoming earnings report expected to show an increase in EPS to $1.00.
See More
Victory Capital Reveals Rival Offer to Acquire Janus Henderson
Victory Capital's Bid: Victory Capital is making a public bid to acquire Janus Henderson, a fellow asset management firm.
Previous Agreement: This move comes shortly after Janus Henderson's board agreed to sell the company to a consortium led by Nelson Peltz’s Trian Fund Management and General Catalyst Group Management.
See More
Victory Capital Offers to Acquire Janus Henderson at $57.04 per Share
- Acquisition Proposal: Victory Capital has proposed to acquire Janus Henderson for $57.04 per share, totaling approximately $740 million, aiming to expand its asset management scale and enhance market competitiveness.
- Deal Structure: The acquisition offer includes 0.350 shares of Victory Capital and $30 in cash per Janus Henderson share, demonstrating the company's confidence in Janus Henderson's future growth potential while providing liquidity to shareholders.
- Market Reaction: Following the acquisition announcement, Janus Henderson's stock rose nearly 6%, reflecting positive market expectations for the deal, while Victory Capital's shares fell 6%, indicating investor concerns over its financing structure.
- Strategic Implications: This acquisition not only helps Victory Capital increase its market share but also has the potential to improve operational efficiency through resource and client base integration, positioning the company more favorably in the competitive asset management industry.
See More
Janus Henderson Stock Jumps 6.8% as Victory Capital Confirms $57.04/Share Acquisition Offer
Janus Henderson's Rise: Janus Henderson's shares have increased by 6.8%.
Victoria Capital's Proposal: Victoria Capital has made a proposal to acquire Coat at a price of $57.04 per share.
See More
Victory Capital Proposes Acquisition of Janus Henderson at $57.04 per Share
- Acquisition Proposal Details: Victory Capital has submitted a proposal to acquire Janus Henderson for $57.04 per share, comprising $30 in cash and 0.350 shares of Victory Capital stock, with a total transaction value of approximately $16 billion, indicating strong appeal to Janus Henderson shareholders.
- Shareholder Equity Protection: Post-acquisition, Janus Henderson shareholders would own about 38% of the combined entity, with Victory Capital asserting that the proposal offers higher value and minimal execution risk, qualifying as a 'Company Superior Proposal' under existing merger agreements.
- Non-Price Terms Advantages: The proposal includes improved non-price terms such as no financing outs, full specific performance protection, a lower client consent threshold, and a reduced termination fee, aimed at minimizing uncertainties during the transaction process.
- Brand and Team Retention: Victory Capital has committed to retaining investment professionals, preserving the Janus Henderson brand, and minimizing client disruption, ensuring a smooth transaction and maintaining strong client relationships.
See More
Victory Capital Proposes Acquisition of Janus Henderson Group
- Stock Surge: Janus Henderson Group (JHG) shares rose 5.7% to $53.02 in Thursday afternoon trading, reflecting market optimism regarding Victory Capital's (VCTR) acquisition proposal.
- Acquisition Proposal Details: Victory Capital has proposed to acquire JHG for $57.04 per share, consisting of $30 in cash and 0.350 shares of VCTR, indicating strong acquisition intent and market appeal.
- Competitive Acquisition Risks: Janus Henderson has already agreed to sell to Trian Fund Management and General Catalyst Group for $49 per share, with Trian holding 20.6% of JHG shares, meaning Victory's proposal faces complex shareholder voting challenges.
- Expected Synergies: Victory Capital estimates the acquisition will generate approximately $500 million in cost synergies, with gross leverage projected at 3.5x 2025 EBITDA excluding synergies and 2.6x including synergies, demonstrating manageable financial leverage.
See More
Janus Henderson in Spotlight Amid Heated Takeover Battle
- Acquisition Proposal: Victory Capital has made a bid of $57.04 per share for Janus Henderson, which includes $30.00 in cash and a fixed exchange ratio of 0.350 shares of Victory Capital common stock, representing a 37% premium over Janus Henderson's unaffected share price as of October 24, indicating the attractiveness and potential value of the acquisition.
- Shareholder Benefits: The proposal aims to provide substantial cash proceeds for Janus Henderson shareholders, who would own approximately 38% of the combined company with an enterprise value of around $16 billion, suggesting that the acquisition could create long-term value for shareholders.
- Market Reaction: Janus Henderson's stock rose 5.74% to $53.03 on Thursday, nearing its 52-week high, reflecting a positive market response to the acquisition proposal and indicating investor optimism about future growth prospects.
- Analyst Ratings: Despite the stock's rise, analysts maintain a Hold rating on Janus Henderson with an average price target of $44.23, reflecting a cautious outlook on its future financial performance, especially with the upcoming earnings report expected to show an increase in EPS to $1.00.
See More
Victory Capital Reveals Rival Offer to Acquire Janus Henderson
Victory Capital's Bid: Victory Capital is making a public bid to acquire Janus Henderson, a fellow asset management firm.
Previous Agreement: This move comes shortly after Janus Henderson's board agreed to sell the company to a consortium led by Nelson Peltz’s Trian Fund Management and General Catalyst Group Management.
See More
Victory Capital Offers to Acquire Janus Henderson at $57.04 per Share
- Acquisition Proposal: Victory Capital has proposed to acquire Janus Henderson for $57.04 per share, totaling approximately $740 million, aiming to expand its asset management scale and enhance market competitiveness.
- Deal Structure: The acquisition offer includes 0.350 shares of Victory Capital and $30 in cash per Janus Henderson share, demonstrating the company's confidence in Janus Henderson's future growth potential while providing liquidity to shareholders.
- Market Reaction: Following the acquisition announcement, Janus Henderson's stock rose nearly 6%, reflecting positive market expectations for the deal, while Victory Capital's shares fell 6%, indicating investor concerns over its financing structure.
- Strategic Implications: This acquisition not only helps Victory Capital increase its market share but also has the potential to improve operational efficiency through resource and client base integration, positioning the company more favorably in the competitive asset management industry.
See More
Janus Henderson Stock Jumps 6.8% as Victory Capital Confirms $57.04/Share Acquisition Offer
Janus Henderson's Rise: Janus Henderson's shares have increased by 6.8%.
Victoria Capital's Proposal: Victoria Capital has made a proposal to acquire Coat at a price of $57.04 per share.
See More
Victory Capital Proposes Acquisition of Janus Henderson at $57.04 per Share
- Acquisition Proposal Details: Victory Capital has submitted a proposal to acquire Janus Henderson for $57.04 per share, comprising $30 in cash and 0.350 shares of Victory Capital stock, with a total transaction value of approximately $16 billion, indicating strong appeal to Janus Henderson shareholders.
- Shareholder Equity Protection: Post-acquisition, Janus Henderson shareholders would own about 38% of the combined entity, with Victory Capital asserting that the proposal offers higher value and minimal execution risk, qualifying as a 'Company Superior Proposal' under existing merger agreements.
- Non-Price Terms Advantages: The proposal includes improved non-price terms such as no financing outs, full specific performance protection, a lower client consent threshold, and a reduced termination fee, aimed at minimizing uncertainties during the transaction process.
- Brand and Team Retention: Victory Capital has committed to retaining investment professionals, preserving the Janus Henderson brand, and minimizing client disruption, ensuring a smooth transaction and maintaining strong client relationships.
See More
