Amundi agreed to acquire Pioneer Investments in a €3.5 billion ($3.7 billion) deal, creating a €1.28 trillion money manager.
Amundi and Pioneer's parent company, European banking group UniCredit, announced the binding agreement in separate news releases Monday. The two firms announced they had entered into exclusive negotiations for the sale Dec. 5.
The transaction, which is set to close in the first half of 2017, is subject to regulatory approval by the Italian regulator, said a spokesman for Amundi.
The deal will bolster Amundi's institutional client base. The €1 trillion firm will also benefit from a U.S. platform for money management and distribution, it said in its news release. The agreement will enhance and diversify strategies, reinforcing Amundi's asset class offerings in European, U.S. and emerging markets equities, multiasset, and U.S. fixed income. Pioneer clients will benefit from Amundi's expertise in smart beta, exchange-traded funds, real and alternative assets, and other offerings.
The spokesman added that key people at Pioneer will be retained, and executive members will be integrated into Amundi's executive committee. He added it was too early to comment on specific strategies and teams.
The deal will also involve a strategic partnership between Amundi and Italy-based UniCredit, underpinned by a 10-year distribution agreement for Italy, Germany and Austria.
“The acquisition of Pioneer Investments is a major step to anchor Amundi as the European leader in asset management,” Yves Perrier, CEO of Amundi, in the news release. “This acquisition will reinforce Amundi's industrial model and will benefit our clients whilst creating significant value for our shareholders. Pioneer Investments is a world-class asset manager that has a highly complementary business and geographic profile. At Amundi we are all excited to welcome soon our new colleagues who will join us in a leading asset management group fully dedicated to serve its retail and institutional clients.”
In addition to the purchase price, UniCredit will receive a €315 million pre-transaction extraordinary dividend, which will be distributed by Pioneer, said UniCredit in its release.
UniCredit said the deal is a further significant step in its group-wide strategic review.
Jean Pierre Mustier, CEO of UniCredit, said in the release the process to sell Pioneer "attracted a lot of interest from a range of quality buyers."
UniCredit's financial advisers were J.P. Morgan, Morgan Stanley and UniCredit Corporate & Investment Banking. Gianni, Origoni, Grippo, Cappelli & Partners acted as legal adviser.
