Victory Capital, Amundi execute agreement to become strategic partners

Victory Capital announced that it has reached a definitive agreement with Amundi, for their previously announced transaction. Consistent with the memorandum of understanding announced on April 16, Amundi and Victory Capital have entered into reciprocal 15-year distribution agreements which will be effective upon closing of the transaction, the Amundi U.S. business will be combined into Victory Capital, and Amundi will become a strategic shareholder of Victory Capital. Under the distribution agreements, Victory Capital will be the supplier of US-manufactured active asset management products for Amundi’s distribution outside of the U.S. Additionally, Victory Capital will become the distributor of Amundi’s non-US manufactured products in the U.S. Victory Capital’s net leverage ratio is projected to significantly improve upon closing, as a result of higher cash flow and the absence of incurring any incremental debt from the transaction. Under the proposed transaction, Amundi U.S. would be combined into Victory Capital in exchange for a 26.1% economic stake in Victory Capital, subject to customary adjustment. Amundi would become a strategic shareholder of Victory Capital with two of its representatives joining the Victory Capital board of directors when the transaction closes. The transaction is subject to customary closing conditions, including regulatory approvals and the consent of Amundi U.S. clients, and is expected to be completed late in the fourth quarter of 2024 or in early 2025. The issuance of Victory Capital shares in the proposed transaction is subject to the approval of Victory Capital shareholders.