Franklin Resources, Inc. · NYSE:BEN
Franklin Resources — Merger or Acquisition (May 2023)
9 slides from Franklin Resources's merger presentation, May 31, 2023
Slide 1: Franklin Templeton, Power Corporation of Canada and Great-West Lifeco Establish Strategic Partnership
Franklin Templeton, Power Corporation of Canada and Great-West Lifeco Establish Strategic Partnership Franklin Templeton to Acquire Putnam Investments May 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation that are not historical facts are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this presentation, words or phrases generally written in the future tense and/or pre
Slide 3: Transaction Summary
Transaction Summary Franklin Templeton to form a long-term strategic partnership with the Power Corporation of Canada (“Power” and, together with its subsidiaries, the “Power Group of Companies”) and Great-West Lifeco, Inc. (“Great-West”). Franklin Templeton to acquire Putnam Investments (“Putnam”)
Slide 4: Transaction Overview and Rationale: Long-Term Strategic Partnership
Transaction Overview and Rationale 1 Establishment of a Long-Term Strategic Partnership between Franklin Templeton, Power and Great-West • Power holds controlling interests in Great-West and IGM Financial and has collective AUM/AUA of $2.1tn1. ‒ Great-West is a leader in global insurance, retirement
Slide 5: Transaction Overview and Rationale: Acquisition of Putnam
Transaction Overview and Rationale 2 Acquisition of Putnam, a Global Asset Manager with Complementary Capabilities • $136bn1 of total AUM with complementary and differentiated investment and distribution capabilities ‒ Outstanding investment performance with greater than 80% of mutual fund assets in
Slide 6: Transaction Overview and Rationale: Attractive Financial Profile and Pro Forma Impact
Transaction Overview and Rationale 3 Attractive Financial Profile and Pro Forma Impact • Upfront purchase price of approximately $925mm1 paid primarily in stock, plus up to $375mm in contingent consideration structured over years 3 – 7 and tied to revenue growth targets from the partnership • Expect
Slide 7: Long-Term Strategic Partnership with Power Group of Companies
Long-Term Strategic Partnership with Power Group of Companies Power: Leading Financial Services Enterprise Franklin Templeton: Diversified Global Asset Manager • 6th largest life insurer in North America with $1.9tn in Consistent business Capabilities assets under administration (“AUA”); philosophie
Slide 8: Historic Performance of Putnam and Pro Forma Highlights
Historic Performance of Putnam and Pro Forma Highlights Putnam Highlights Putnam Franklin Templeton Pro Forma • Global asset management platform based in Boston AUM: $1.56tn1 AUM1: $136bn AUM1: $1.42tn with offices in Andover, London, Munich, Singapore (excludes $25bn initial partnership AUM) and To
Slide 9: Summary Financial Impact
Summary Financial Impact • Upfront Purchase Price: Franklin Resources, Inc. to pay approximately $825mm1 in stock consideration at close and $100mm in cash 180 days after closing for 100% of Putnam ‒ Franklin Resources, Inc. to issue 33.3mm shares • Contingent Payments: Up to $375mm payable in cash
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