Amundi has entered into exclusive negotiations with Société Générale for the acquisition of Lyxor for a total cash consideration of €825m, or €755m excluding excess capital.
With this acquisition, Amundi would become the European leader in ETF, with €142bn combined AuM, a 14% market share in Europe and a diversified profile in terms of client base and geography.
Amundi would benefit from strong levers to accelerate its development on the fast-growing ETF segment, while complementing its offering in active management, in particular in liquid alternative assets and advisory solutions.
Given the high synergy potential, this transaction compliant with Amundi’s financial discipline would be
significantly value accretive, with:
- an enterprise value representing a P/E 2021e multiple of ~10×8, including run-rate cost synergies only
- ~+7% accretive on Amundi’s EPS 2021e, including run-rate cost synergies only9
- return on Investment > 10% in year 3 after completion including run-rate cost synergies only
This acquisition is fully in line with the Crédit Agricole group’s strategy, which aims at reinforcing its position in the asset gathering businesses. The transaction is expected to be completed by February 2022 at the latest, after consultation of the Works Councils, and subject to receiving the required regulatory and anti-trust approvals.
Founded in 1998, Lyxor is a pioneer in ETF in Europe and has a total €124bn in Assets under Management (AuM). Lyxor is one of the key players in the ETF market (€77bn of AuM, 3rd largest player in Europe with a 7.4% market share) and has developed a recognized expertise in active management (€47bn of AuM), notably through its leading alternative platform.
The Investor and Analyst Presentation is available here
Certain activities from Lyxor are excluded from the scope of the transaction and retained by Société Générale: (i) structured asset management solutions intended for Société Générale’s global markets clients and (ii) asset management activities dedicated to savings solutions and carried out for Société Générale (Branch networks and Private Banking) such as structuring of saving solutions, funds selection and the supervision of the Société Générale Group’s asset management companies.