Victory Capital has just turned up the heat in the takeover battle for rival Janus Henderson. Its fresh $8.6 billion bid escalates the head-to-head contest with Nelson Peltz’s Trian Fund Management and General Catalyst, making this one of the sector’s most closely watched deals in years.
Charlie Ring, Partner in the Financial Services Regulation & Funds team of international law firm Charles Russell Speechlys, explains why the clash matters saying:
“The asset management sector is witnessing a compelling bidding war in Victory Capital raising its offer for Janus Henderson to $8.6 billion, intensifying its challenge to the take-private deal proposed by Nelson Peltz’s Trian Fund Management and General Catalyst.
“The bidding war is notable for the head-to-head competition between a strategic buyer and a financial buyer consortium and the outcome of this contest may well influence how future financial services deals are structured, valued and contested in the future – particularly in relation to the relative premiums that strategic versus financial buyers are willing to pay and the level of certainty each can offer on execution. Asset managers from across the sphere – large and mid-cap – looking for an exit of their own in the near future would do well to keep an eye on how this transaction pans out and ensure their business is attractive to both strategic and financial buyers.
“Asset managers should ensure they have their house in proper order ahead of any potential sale or bidding process – to maximise both deal value and deal execution – for example by ensuring their financial records are up to date and to identify any ‘gaps’ in their business that might benefit from being remedied ahead of due diligence being undertaken on any sale process.”
