Great-West Lifeco Inc. has agreed that it and an affiliate will pay a total of $3.9 billion for Putnam Investments and Putnam’s 25% stake in T.H. Lee Partners L.P., a private equity firm.
Great-West Lifeco, Winnipeg, Manitoba, is a large financial services holding company that, up until now, has been most visible in the United States as the parent of Great-West Life & Annuity Insurance Company, Greenwood Village, Colo., a company that sells group health coverage, retirement plans and employee benefits products.
Putnam, Boston, a unit of Marsh & McLennan Companies Inc., is a mutual fund company with satellite offices in London and Tokyo, 3,000 employees, and $192 billion in assets under management. About $35 billion of the assets are in the accounts of European and Japanese clients.
Great-West Lifeco and Marsh hope to complete the deal by June 30.
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Marsh put Putnam on the blocks months ago, after regulatory investigations in connection with matters such as mutual fund market-timing hurt Putnam’s ability to hold on to fund assets.
Great-West Lifeco decided to acquire Putnam because “this transaction positions Lifeco as a leader in asset accumulation and wealth management in the United States,” Great-West Lifeco President Raymond McFeetors says in a statement.
After the deal is completed, Putnam will keep its name, managers, and investment, distribution and service teams, Great-West Lifeco says.