Victory Capital to Buy First Eagle in $7B Deal, Nearing $1T AUM Goal
VCTR has more than doubled off its 52-week low of $57.03.
Summary
Victory Capital is acquiring privately held First Eagle Investments in a cash-and-stock deal valued at approximately $7 billion, paying $4.4 billion in cash and $2.0 billion in stock, and assuming $575 million of First Eagle's 7.25% notes due 2032. The transaction moves Victory closer to its stated target of managing $1 trillion in assets. This is a transformative acquisition for a company with a market cap of roughly $7.1 billion, effectively doubling its size. The deal follows a string of strong AUM reports and record Q2 earnings, reinforcing management's aggressive growth strategy. Victory expects approximately 35% EPS accretion with $280 million in net expense synergies, and Genstar will own about 14.6% with voting capped at 4.9%.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Victory Capital will pay $4.4B cash and $2.0B stock, assume $575M of First Eagle's 7.25% notes due 2032, and expects ~35% EPS accretion with $280M net expense synergies. Genstar will own ~14.6% with voting capped at 4.9%.
At the time of this announcement, VCTR was trading at $117.00 on NASDAQ in the Finance sector, with a market capitalization of approximately $7.1B. The 52-week trading range was $57.03 to $119.56. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.