Macquarie to buy US asset manager

Macquarie Asset Management has entered into an agreement to buy all the outstanding common shares of Waddell & Reed Financial for $2.3 billion. Upon completion of the deal, Macquarie will sell Waddell & Reed’s wealth management business – with approximately US$63 billion in assets under administration – to retail investment and advisory firm LPL Financial Holdings for $300 million, while holding onto an asset management arm with $68 billion in assets under management.

“The addition of Waddell & Reed and our enhanced partnership with LPL will significantly increase our ability to grow and invest in our combined business for the benefit of our clients … The consideration offered reflects the quality of Waddell & Reed’s business and the future benefits of our partnership with LPL,” said Martin Stanley, head of Macquarie Asset Management.

As a result of the transaction, Macquarie Asset Management’s AUM are expected to increase to over $650 billion, and Macquarie will also become one of LPL’s “top-tier strategic asset management partners”.

“We look forward to deepening our long-term partnership with Macquarie, which will help us preserve unique aspects of the Waddell & Reed advisor experience while also positioning us to explore additional long-term opportunities together,” said LPL president and CEO Dan Arnold.

Waddell & Reed has been offering investment and wealth management services to clients throughout the US since 1937, and distributes its products through the Ivy Investments brand as well as independent financial advisers.