The Legg Mason headquarters stands in Baltimore, Maryland.
Andrew Harrer | Bloomberg | Getty Images
Franklin said in a press release that it agreed to acquire Legg Mason for $50 per share, or $4.5 billion, in an all-cash deal and that it would assume about $2 billion of debt as part of the purchase.
The company expects its purchase of Legg Mason to add to per-share earnings as soon as fiscal 2021. Shares of Legg Mason soared 23% immediately after the opening bell following the announcement while Frankin stock jumped 12.6%.
“This is a landmark acquisition for our organization that unlocks substantial value and growth opportunities driven by greater scale, diversity and balance across investment strategies, distribution channels and geographies,” said Greg Johnson, executive chairman of the…