Janus Henderson Investors  

Henderson and Janus Capital in £4.7bn merger

Henderson and Janus Capital in £4.7bn merger

Henderson Global Investors and Janus Capital have announced an "equal" merger creating a new firm valued at more than $6bn (£4.7bn) bringing together operations in the US, Europe, Australia and Asia with more than $300bn in assets under management (AUM).

Under the agreement, the new firm Janus Henderson Global Investors, will be split by Henderson shareholders owning 57 per cent and Janus investors 43 per cent. The merger it set to close by June 2017.

Henderson and Janus chief executives Andrew Formica and Dick Weil will jointly lead the firm, taking on co-chief executive titles. Janus head of investments Enrique Chang will become global CIO while Henderson global head of distribution Phil Wagstaff will lead the combined firm's sales efforts.

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Janus currently runs 30 funds for UK investors and has most recently been famed for becoming the home of Pimco-founder Bill Gross. Mr Gross joined the firm in late 2015 after an acrimonious split with the California-based bond house. According to the companies, the merger will bring together Janus' strength in the US asset management market with Henderson's operations in the UK and Europe, with combined assets under management of $320bn. This will be split with 54 per cent in the US, 31 per cent in Emea and 15 per cent for pan-Asian customers. 

Henderson and Janus said the merger will lead to annual savings of $110m with commitment to a "progressive dividend policy" which would grow in line with underlying earnings.

Mr Formica said: "Henderson and Janus are well-aligned in terms of strategy, business mix and most importantly a culture of serving our clients by focusing on independent, active asset management."

Mr Weil added: "Janus brings a strong platform in the US and Japanese markets, which is complemented by Henderson’s strength in the UK and European markets. The complementary nature of the two firms will facilitate a smooth integration."

The merger is subject to shareholder and regulatory approval but both boards have backed the deal. Once completed, the joined business will seek to list on the New York Stock Exchange while retaining Henderson's listing in Australia.