Waddell & Reed Financial Inc. (WDR) Wednesday said it has agreed to be acquired by Macquarie Asset Management, the asset management division of Macquarie Group (MQG.AX,MQBKY.PK) for a total consideration of $1.7 billion.
Macquarie would acquire all of the outstanding shares of Waddell & Reed for $25.00 per share in cash.
The transaction represents a premium of about 48% to the closing price of Waddell & Reed common stock on December 1, 2020, the last trading day prior to the transaction announcement.
On completion of the deal, Macquarie has agreed to sell Waddell & Reed Financial, Inc.’s wealth management platform to LPL Financial Holdings Inc. (LPLA).
The transaction has been approved by the Boards of Directors of Waddell & Reed Financial, Inc., Macquarie Group and LPL. It is expected to close in the middle of 2021, subject to regulatory approvals, Waddell & Reed Financial, Inc. stockholder approval and other customary closing conditions.
Martin Stanley, Head of Macquarie Asset Management, said: “The addition of Waddell & Reed Financial, Inc. and our enhanced partnership with LPL will significantly increase our ability to grow and invest in our combined business for the benefit of our clients. Ivy Investments’ complementary investment capabilities will provide diversification to Macquarie Asset Management’s capabilities and client base. The consideration offered reflects the quality of Waddell & Reed’s business and the future benefits of our partnership with LPL.”
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