Legg Mason Inc LM announced it completed the acquisition of an 83 percent equity interest in Clarion Partners, which is a leading diversified real estate investment firm. Clarion has about $40 billion AUM at the end of the first quarter, according to the company.
On January 22, Legg Mason disclosed its intention to acquire Clarion Partners. Accordingly, it paid $585 million for getting 83 percent ownership. Additionally, the company would pay $16 million as its portion of some co-investments. The rest of the 17 stake will be retained by the management team.
The company indicated that the firm's previous majority partner, Lightyear Capital, would divest its entire ownership stake in the transaction. The transaction is expected to close in the second calendar quarter of the current year.
Legg Mason expects the transaction to be modestly accretive to earnings in the first year after the closing. That excluded one-time deal-related charges of $10-$15 million.
On Wednesday, shares of the company traded higher by 5.37 percent.
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