Sipp Thomas Michael sold (to issuer) $484K of VCTR

Victory Capital (VCTR) agreed to acquire First Eagle Investments for $7B, including $4.4B in cash, $2B in stock, and assuming $575M in debt. The combined firm will manage $571B in assets and generate $3.2B in annual revenue. First Eagle will retain its brand and operations. The deal is expected to close by Q1 2027.

S&P affirmed Victory Capital's BB rating but revised its outlook to stable from positive after the company's $7.0B acquisition of First Eagle Investments. The deal, expected to close with significant debt financing, will increase Victory's AUM to $571B and revenue to over $3B in 2027. S&P expects leverage of 3.0x-4.0x post-acquisition.

Global ETF inflows reached $150 billion in August, nearing a record $1.4 trillion year-to-date. T. Rowe Price acquired F/M Investments, adding fixed income capabilities. Victory Capital acquired First Eagle, creating a $571 billion asset manager. VettaFi acquired RAFI Indexing, expanding smart-beta offerings. Northern Trust rebranded FlexShares ETFs under its main brand. Corgi hired Jeff Weniger as CIO, continuing its thematic ETF expansion.

Victory Capital Holdings agreed to buy First Eagle Investments for $7 billion, adding $222 billion in assets under management and bringing its total to $571 billion. The deal includes $4.4 billion in cash, $2 billion in new shares, and assuming $575 million in debt. Victory aims to achieve $280 million in annual cost savings and reduce leverage to 2x by 2028. First Eagle has seen net inflows for three years and higher fee rates than Victory.

Victory Capital Holdings (VCTR) agreed to acquire First Eagle Investments for $7b, creating a combined platform with $571b in client assets. VCTR's stock has surged 88.97% year-to-date, but analysts debate its valuation, with a consensus price target of $96.33, suggesting a 26% overvaluation at its last close of $121.13. The company faces risks from fee compression and asset outflows.

Victory Capital agreed to acquire First Eagle Investments for $7B, targeting a 2027 close. The deal aims to increase client assets to $571B and annual revenue to $3.2B, with $280M in annual cost savings and 35% EPS accretion.