Legg Mason To Be Acquired In $4.5 Billion Deal

BALTIMORE, MD — A California investment firm is acquiring Legg Mason for $4.5 billion, the companies announced Tuesday. Combined, they will manage about $1.5 trillion in assets, focused on institutional and retail clients.

Franklin Resources will assume $2 billion in Legg Mason's debt as part of the acquisition, according to a joint statement, which said the boards of both companies unanimously approved the decision.

There will be no senior management changes at Legg Mason, and the global headquarters for Franklin Resources will remain in San Mateo, California, officials said.

"By preserving the autonomy of each investment organization, the combination of Legg Mason and Franklin Templeton will quickly leverage our collective strengths, while minimizing the risk of disruption," Joseph A. Sullivan, chairman and CEO of Legg Mason, said in a statement. "Our clients will benefit from a shared vision, strong client-focused cultures, distinct investment capabilities and a broad distribution footprint in this powerful combination."

Legg Mason manages about $806 billion as of the end of January, and Franklin Resources, which operates as Franklin Templeton, handles around $688 billion, according to the announcement of the acquisition.

"This is a landmark acquisition for our organization that unlocks substantial value and growth opportunities driven by greater scale, diversity and balance across investment strategies, distribution channels and geographies,” Greg Johnson, executive chairman of the board of Franklin Resources, said in a statement. "Our complementary strengths will enhance our strategic positioning and long-term growth potential, while also delivering on our goal of creating a more balanced and diversified organization that is competitively positioned to serve more clients in more places."