Victory Capital Shareholders Approve All Ballot Proposals at Special Meeting of Stockholders

Rhea-AI Summary

Victory Capital Holdings, Inc. (NASDAQ: VCTR) announced that stockholders approved all proposals related to the previously announced contribution agreement with Amundi at the Special Meeting held on October 11, 2024. David Brown, Chairman and CEO, expressed gratitude for shareholder support and highlighted this as a significant milestone towards completing the Amundi transaction, expected to close in Q1 2025. He reaffirmed guidance of $100 million in expense synergies, expected to be fully realized within two years, with the majority achieved in the first year. The transaction remains subject to customary closing conditions, including regulatory approvals and Amundi US client consents. Integration is reportedly progressing as planned.

Positive

• Stockholders approved all proposals related to the Amundi contribution agreement
• Transaction with Amundi expected to close in Q1 2025
• Reaffirmed guidance of $100 million in expense synergies
• Majority of synergies expected to be achieved within the first year

Negative

• Transaction still subject to regulatory approvals and Amundi US client consents

Insights

Financial Analyst

The shareholder approval of all ballot proposals marks a important step in Victory Capital's strategic growth plan. The upcoming transaction with Amundi, expected to close in Q1 2025, could significantly expand VCTR's asset management capabilities and global reach. The projected $100 million in expense synergies within two years is substantial, potentially boosting profitability and operational efficiency.

Investors should note the emphasis on integration progress and the reaffirmation of synergy targets, which suggests management's confidence in executing the merger successfully. However, the transaction still hinges on regulatory approvals and client consents, introducing some uncertainty. The market will likely watch closely for any updates on these fronts, as well as early indicators of successful integration post-closing.

Market Research Analyst

This development positions Victory Capital for potential market share growth in the competitive asset management industry. The Amundi deal could enhance VCTR's product offerings and distribution channels, potentially attracting more assets under management. Investors should consider the long-term strategic benefits against short-term integration challenges.

The $100 million expense synergy target is ambitious but achievable, representing a significant portion of VCTR's current market cap of $3.78 billion. If realized, this could lead to improved margins and earnings growth. However, the market may remain cautious until concrete progress on integration and synergy realization is demonstrated post-closing.

SAN ANTONIO--(BUSINESS WIRE)-- Victory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital” or the “Company”) today announced that the Company’s stockholders voted to approve all proposals related to the previously announced contribution agreement between Victory Capital and Amundi at the Company’s Special Meeting held on October 11, 2024.

David Brown, Chairman and Chief Executive Officer said: “I would like to thank our shareholders for their ongoing support as we execute on our growth strategy. This is another significant milestone as we advance toward completing the transaction with Amundi, which we anticipate will close in the first quarter of 2025. Integration is progressing as planned. We are also reaffirming our guidance of $100 million in expense synergies that are expected to be fully realized within two years with the majority achieved within the first year.”

The transaction remains subject to customary closing conditions, including regulatory approvals and consents of Amundi US clients.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements within the meaning of applicable U.S. federal and non-U.S. securities laws. These statements may include, without limitation, any statements preceded by, followed by or including words such as “target,” “believe,” “expect,” “aim,” “intend,” “may,” “anticipate,” “assume,” “budget,” “continue,” “estimate,” “future,” “objective,” “outlook,” “plan,” “potential,” “predict,” “project,” “will,” “can have,” “likely,” “should,” “would,” “could” and other words and terms of similar meaning or the negative thereof and include, but are not limited to, statements regarding the proposed transaction and the outlook for Victory Capital’s or Amundi’s future business and financial performance. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond Victory Capital’s and Amundi’s control and could cause Victory Capital’s and Amundi’s actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements.

Although it is not possible to identify all such risks and factors, they include, among others, the following: risks that conditions to closing will fail to be satisfied and that the transaction will fail to close on the anticipated timeline, if at all; risks associated with the expected benefits, or impact on the Victory Capital’s and Amundi’s respective businesses, of the proposed transaction, including the ability to achieve any expected synergies; and other risks and factors relating to Victory Capital’s and Amundi’s respective businesses contained in their respective public filings.

About Victory Capital

Victory Capital is a diversified global asset management firm with total assets under management of $176.1 billion, and $181.1 billion in total client assets, as of September 30, 2024. The Company employs a next-generation business strategy that combines boutique investment qualities with the benefits of a fully integrated, centralized operating and distribution platform.

Victory Capital provides specialized investment strategies to institutions, intermediaries, retirement platforms and individual investors. With 11 autonomous Investment Franchises and a Solutions Business, Victory Capital offers a wide array of investment products and services, including mutual funds, ETFs, separately managed accounts, alternative investments, third-party ETF model strategies, collective investment trusts, private funds, a 529 Education Savings Plan, and brokerage services.

Victory Capital is headquartered in San Antonio, Texas, with offices and investment professionals in the U.S. and around the world. To learn more please visit www.vcm.com or follow Victory Capital on Facebook, Twitter, and LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241014687237/en/

Investors:

Matthew Dennis, CFA

Chief of Staff

Director, Investor Relations

216-898-2412

mdennis@vcm.com

Media:

Jessica Davila

Director of Global Communications

210-694-9693

Jessica_davila@vcm.com

Source: Victory Capital Holdings, Inc.

FAQ

What was the outcome of Victory Capital's Special Meeting of Stockholders on October 11, 2024?

Shareholders approved all ballot proposals related to the previously announced contribution agreement between Victory Capital (VCTR) and Amundi.

When is the Victory Capital (VCTR) and Amundi transaction expected to close?

The transaction is anticipated to close in the first quarter of 2025, subject to customary closing conditions.

What is the expected amount of expense synergies from the Victory Capital (VCTR) and Amundi deal?

Victory Capital reaffirmed guidance of $100 million in expense synergies, expected to be fully realized within two years.

What conditions remain for the Victory Capital (VCTR) and Amundi transaction to be completed?

The transaction remains subject to customary closing conditions, including regulatory approvals and consents of Amundi US clients.