Franklin Resources, Inc., the parent of $1.4tn global investment management firm Franklin Templeton, will acquire asset manager Putnam Investments from Canadian life insurer Great-West Lifeco for approximately $925 million in a largely all-equity deal. 

Approximately $825 million will be paid in stock and $100 million in cash paid out over six months following the deal. 

The transaction, expected to close in the fourth quarter of 2023, is part of a partnership with Power Corporation of Canada, the parent company of subsidiaries including Great-West and IGM Financial. 

As part of the deal, Great-West will become a long-term strategic shareholder in Franklin Resources with a 6.2% stake. Great-West will also provide an initial asset allocation of $25 billion to Franklin Templeton’s specialist investment managers. 

“This is a compelling transaction for Franklin Templeton, and we are excited about the numerous opportunities that will be unlocked by this long-term strategic partnership with the Power Group of Companies including Great-West,” said Jenny Johnson, President and CEO of Franklin Templeton. 

Franklin said it could also pay up to $375 million in “contingent consideration tied to revenue growth targets from the partnership.” 

Founded in 1937, Putnam Investments currently manages about $136 billion in assets as of April. PanAgora Asset Management Inc., a quantitative firm that manages about $33 billion, is not included in the transaction. 

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