Invesco has agreed to acquire rival asset manager OppenheimerFunds from Massachusetts Mutual Life Insurance for $5.7 billion in stock. MassMutual will assume a 15.5% stake in Invesco as part of the deal, which will push the Atlanta-based firm’s AUM to a staggering $1.2 trillion.
MassMutual brought on Lazard in August to explore strategic options for Oppenheimer, which was founded in 1959. The unit has been part of MassMutual for almost 30 years and has roughly $250 billion in AUM.
The acquisition is the latest in a line of transformative transactions by Invesco. The firm has completed seven M&A deals since the start of 2006, per the PitchBook Platform, including the 2006 takeover of WL Ross & Co., the eponymous firm founded by US Secretary of Commerce Wilbur Ross, and the 2010 purchase of a retail asset management business from Morgan Stanley in a $1.5 billion deal. Shares of Invesco (NYSE: IVZ) gained more than 3% Friday.
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