Franklin Resources Inc. has agreed to buy mutual fund pioneer John Templeton's money-management empire for $913 million, the companies announced Friday.
The announcement said the merger of Franklin with Templeton, Galbraith & Hansberger Ltd. will create the largest publicy traded, independent mutual fund company in the United States.Franklin and TGH said the merged company, with assets of $87.8 billion, could better strive in an increasingly competitive worldwide industry.
Templeton, which is chairman of TGH, has been a pioneer in international investment fund management. He launched his first mutual fund in 1954. His company now manages 78 funds worldwide with $21.3 billion in assets.
Now 79, he indicated in mid-July that he was talking to a half-dozen or more companies about selling or merging his money-management empire.
"We are absolutely delighted with this agreement," said Charles B. Johnson, president and chief executive of Franklin Resources. "Templeton is exactly the firm we sought as a partner.
"Their mix of global equity funds blends perfectly with Franklin's strength in U.S. fixed-income products. The combination of our two companies should make us a strong competitor in the investment management industry for years to come," he said.
Franklin, based in San Mateo, Calif., manages 68 funds. As of June 30, it had $66.5 billion under management.