Great-West Lifeco Inc. has agreed that it and an affiliate will pay a total of $3.9 billion for Putnam Investments and Putnam's 25% stake in T.H. Lee Partners L.P., a private equity firm.
Great-West Lifeco, Winnipeg, Manitoba, is a large financial services holding company that, up until now, has been most visible in the United States as the parent of Great-West Life & Annuity Insurance Company, Greenwood Village, Colo., a company that sells group health coverage, retirement plans and employee benefits products.
Putnam, Boston, a unit of Marsh & McLennan Companies Inc., is a mutual fund company with satellite offices in London and Tokyo, 3,000 employees, and $192 billion in assets under management. About $35 billion of the assets are in the accounts of European and Japanese clients.
Great-West Lifeco and Marsh hope to complete the deal by June 30.
Marsh put Putnam on the blocks months ago, after regulatory investigations in connection with matters such as mutual fund market-timing hurt Putnam's ability to hold on to fund assets.
Great-West Lifeco decided to acquire Putnam because "this transaction positions Lifeco as a leader in asset accumulation and wealth management in the United States," Great-West Lifeco President Raymond McFeetors says in a statement.
After the deal is completed, Putnam will keep its name, managers, and investment, distribution and service teams, Great-West Lifeco says.
