Victory Capital Proposes Acquisition of Janus Henderson Group
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 8 hours ago
0mins
Should l Buy JHG?
Source: seekingalpha
- 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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy JHG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on JHG
Wall Street analysts forecast JHG stock price to fall
6 Analyst Rating
1 Buy
5 Hold
0 Sell
Hold
Current: 50.150
Low
48.00
Averages
49.67
High
55.00
Current: 50.150
Low
48.00
Averages
49.67
High
55.00
About JHG
Janus Henderson Group plc is a United Kingdom-based independent global asset manager, which is specializing in active investment across various asset classes. The Company manages a broad range of investment products for institutional and retail investors across four capabilities: equities, fixed income, multi-asset and alternatives. Its intermediary channel distributes United States mutual funds, separately managed accounts, exchange-traded funds and various others, through financial intermediaries, including banks, financial advisors and discretionary wealth managers. The self-directed channel serves individual investors who invest in its products through a mutual fund supermarket or directly with the Company. Its institutional channel serves corporations, endowments, pension funds and others, with distribution direct to the plan sponsor and through consultants. It has operations in North America, the United Kingdom, continental Europe, Latin America, Japan, Asia, and Australia.
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.
Janus Henderson Confirms Acquisition Proposal
- Acquisition Proposal Confirmation: Janus Henderson has received an unsolicited acquisition proposal from Trian Fund Management and General Catalyst at $49.00 per share, indicating market recognition of its asset value.
- Special Committee Evaluation: The Special Committee will assess the proposal in consultation with independent financial and legal advisors, ensuring alignment with shareholder interests and demonstrating a cautious approach to mergers and acquisitions.
- Merger Agreement Remains Effective: Despite the new proposal, the existing merger agreement remains in full force, with the Board continuing to recommend that shareholders support the original merger plan, reflecting strong confidence in the current transaction.
- Shareholder Action Guidance: Janus Henderson shareholders are advised that no action is required at this time, as the Special Committee and Board will continue to advocate for the approval of the merger agreement to ensure a smooth transaction process.
See More
US Stocks Close Mixed: Dow Rises Slightly, Nasdaq Declines
- Mixed Market Performance: On Thursday, the S&P 500 Index fell by 0.54% and the Nasdaq 100 Index declined by 1.16%, while the Dow Jones Industrial Average rose slightly by 0.03%, indicating a divergence in market sentiment, particularly under pressure from tech stocks.
- Nvidia Earnings Impact: Nvidia reported Q4 revenue of $62.3 billion, exceeding expectations, yet its stock dropped over 5% due to uncertainties regarding the Chinese market, reflecting investor concerns about an overheated AI economy that could affect related chipmakers' performance.
- Labor Market Signals: Initial jobless claims in the US rose by 4,000 to 212,000, lower than the expected 216,000, indicating resilience in the labor market, which may provide support for the stock market, especially amid potential interest rate cuts by the Fed.
- Geopolitical Risks Intensify: President Trump threatened military action against Iran, heightening market uncertainty; although there are signs of progress in US-Iran nuclear negotiations, geopolitical risks remain a focal point for investors and could negatively impact the stock market.
See More
US Stocks Mostly Lower as Nvidia Earnings Fail to Boost Market Sentiment
- Market Weakness: The S&P 500 index fell by 0.74% and the Nasdaq 100 index dropped by 1.40%, indicating market concerns over Nvidia's earnings failing to alleviate worries about an overheated AI economy, which pressured chipmakers and AI infrastructure stocks.
- Nvidia Earnings Impact: Despite Nvidia reporting Q4 revenue of $62.3 billion, surpassing the consensus of $60.36 billion, its stock declined over 4% due to concerns regarding the Chinese market, reflecting investor doubts about demand durability.
- Salesforce Strong Performance: Salesforce shares rose more than 3%, leading software stocks higher after it provided a strong long-term sales outlook and announced a large share buyback, alleviating fears of AI disruption in the software sector.
- Geopolitical Risks Intensify: Ongoing nuclear talks between the US and Iran have heightened geopolitical risks, with President Trump threatening military action against Iran, which has further impacted investor sentiment and market stability.
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
Mixed U.S. Stock Market as Nvidia Earnings Fail to Boost Investor Confidence
- Mixed Market Performance: The S&P 500 Index is down 0.35% while the Dow Jones Industrial Average is up 0.29%, indicating a divergence in market sentiment, particularly after Nvidia's earnings failed to alleviate concerns about an overheated AI economy, putting pressure on chipmakers and AI infrastructure stocks.
- Nvidia Earnings Reaction: Nvidia reported Q4 revenue of $62.3 billion, exceeding the consensus of $60.36 billion; however, its stock fell over 3% due to ongoing uncertainties regarding the Chinese market, reflecting investor concerns about demand durability.
- Support from Job Data: Initial jobless claims in the U.S. rose by 4,000 to 212,000, which was better than the expected 216,000, indicating labor market strength and potentially providing some support for the stock market amidst mixed signals.
- Geopolitical Risks: As nuclear talks between the U.S. and Iran progress, President Trump has threatened limited military action against Iran, heightening market uncertainty, although easing geopolitical tensions have provided some temporary relief to stocks.
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
Janus Henderson Confirms Acquisition Proposal
- Acquisition Proposal Confirmation: Janus Henderson has received an unsolicited acquisition proposal from Trian Fund Management and General Catalyst at $49.00 per share, indicating market recognition of its asset value.
- Special Committee Evaluation: The Special Committee will assess the proposal in consultation with independent financial and legal advisors, ensuring alignment with shareholder interests and demonstrating a cautious approach to mergers and acquisitions.
- Merger Agreement Remains Effective: Despite the new proposal, the existing merger agreement remains in full force, with the Board continuing to recommend that shareholders support the original merger plan, reflecting strong confidence in the current transaction.
- Shareholder Action Guidance: Janus Henderson shareholders are advised that no action is required at this time, as the Special Committee and Board will continue to advocate for the approval of the merger agreement to ensure a smooth transaction process.
See More
US Stocks Close Mixed: Dow Rises Slightly, Nasdaq Declines
- Mixed Market Performance: On Thursday, the S&P 500 Index fell by 0.54% and the Nasdaq 100 Index declined by 1.16%, while the Dow Jones Industrial Average rose slightly by 0.03%, indicating a divergence in market sentiment, particularly under pressure from tech stocks.
- Nvidia Earnings Impact: Nvidia reported Q4 revenue of $62.3 billion, exceeding expectations, yet its stock dropped over 5% due to uncertainties regarding the Chinese market, reflecting investor concerns about an overheated AI economy that could affect related chipmakers' performance.
- Labor Market Signals: Initial jobless claims in the US rose by 4,000 to 212,000, lower than the expected 216,000, indicating resilience in the labor market, which may provide support for the stock market, especially amid potential interest rate cuts by the Fed.
- Geopolitical Risks Intensify: President Trump threatened military action against Iran, heightening market uncertainty; although there are signs of progress in US-Iran nuclear negotiations, geopolitical risks remain a focal point for investors and could negatively impact the stock market.
See More
US Stocks Mostly Lower as Nvidia Earnings Fail to Boost Market Sentiment
- Market Weakness: The S&P 500 index fell by 0.74% and the Nasdaq 100 index dropped by 1.40%, indicating market concerns over Nvidia's earnings failing to alleviate worries about an overheated AI economy, which pressured chipmakers and AI infrastructure stocks.
- Nvidia Earnings Impact: Despite Nvidia reporting Q4 revenue of $62.3 billion, surpassing the consensus of $60.36 billion, its stock declined over 4% due to concerns regarding the Chinese market, reflecting investor doubts about demand durability.
- Salesforce Strong Performance: Salesforce shares rose more than 3%, leading software stocks higher after it provided a strong long-term sales outlook and announced a large share buyback, alleviating fears of AI disruption in the software sector.
- Geopolitical Risks Intensify: Ongoing nuclear talks between the US and Iran have heightened geopolitical risks, with President Trump threatening military action against Iran, which has further impacted investor sentiment and market stability.
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
Mixed U.S. Stock Market as Nvidia Earnings Fail to Boost Investor Confidence
- Mixed Market Performance: The S&P 500 Index is down 0.35% while the Dow Jones Industrial Average is up 0.29%, indicating a divergence in market sentiment, particularly after Nvidia's earnings failed to alleviate concerns about an overheated AI economy, putting pressure on chipmakers and AI infrastructure stocks.
- Nvidia Earnings Reaction: Nvidia reported Q4 revenue of $62.3 billion, exceeding the consensus of $60.36 billion; however, its stock fell over 3% due to ongoing uncertainties regarding the Chinese market, reflecting investor concerns about demand durability.
- Support from Job Data: Initial jobless claims in the U.S. rose by 4,000 to 212,000, which was better than the expected 216,000, indicating labor market strength and potentially providing some support for the stock market amidst mixed signals.
- Geopolitical Risks: As nuclear talks between the U.S. and Iran progress, President Trump has threatened limited military action against Iran, heightening market uncertainty, although easing geopolitical tensions have provided some temporary relief to stocks.
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
