Janus Capital Group, Inc. (JNS), an asset management holding company, on Monday, announced its intention to purchase an additional 50% ownership interest in US value manager Perkins, Wolf, McDonnell and Co., LLC, or PWM, for $90 million.
Following the closing of the deal, Janus would own 80% of PWM. The acquisition enables Janus Capital to offer a more broadly diversified range of investment products and complements Janus' growth and risk-managed product lineup.
The company said that the proposed deal included subadvisory agreements that must be approved by shareholders of the affected funds. The deal is expected to close in the fourth quarter of 2008, subject to customary closing conditions.
Following the transaction, Perkins, Wolf, McDonnell and Co., LLC would change its name to Perkins Investment Management LLC. In addition, the Janus Mid Cap Value Funds would change their names to Perkins Mid Cap Value Funds, Janus Small Cap Value Fund would be renamed Perkins Small Cap Value Fund and the Janus Small Company Value Funds would become Perkins Small Company Value Funds.
Chief executive officer of Janus, Gary Black commented, "Perkins has been a key strategic partner for Janus and we have great confidence in its investment professionals and research-driven approach to value investing. This agreement is important because it enables Janus to offer our clients a wider range of investment solutions."
Shares of Janus Capital closed Monday's regular trading session at $24.03, down 61 cents or 2.48%.
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