Executive Changes Underway at Janus Henderson

When Janus Capital and Henderson Global completed what they termed an “all-stock merger of equals” on May 30, changes were made at the board level to divide it equally between board members from Janus and Henderson. The CEOs of the merged company, Dick Weil of Janus and Andrew Formica of Henderson Global, were named co-CEOs. The company also announced the merger of several mutual funds.

Since then, the company has “been focused on integration,” according to a press release accompanying its latest earnings report, out Tuesday. It highlighted “$57 million of net run-rate cost synergies … comprised largely of savings from a reduced combined headcount.”

More cuts could be coming. In the press release the company said it expects to “realize at least $85 million” of such synergies by the end of 12 months after the merger and “at least $100 million of recurring annual run-rate pretax net cost synergies” within three years after the merger.

The firm reported better-than-expected second-quarter earnings of $139.8 million, or 68 cents a share, up from $98.9 million, or $0.47 per share, in the year-ago quarter. Revenues rose 15.2% to $482.2 million and assets under management increased 4% to $345 billion. Net asset outflows slowed to $1 billion, representing a $6 billion improvement from the first quarter of 2017 due to “positive equity inflows and moderation in quantitative equity outflows.”

The firm’s stock price rose 4% by the end of trading on Tuesday. Since the merger was completed, it’s gained about 16%.

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