M&M seals Putnam deal

Marsh & McLennan Companies Inc. completed its sale of Putnam Investments to a subsidiary of Power Financial Corp., a financial services holding company.
Under the terms of the agreement, Great-West Lifeco Inc., a subsidiary of Montreal-based Power Financial, purchased Putnam for $3.9 billion in a cash deal.
After accounting for taxes and minority interest, MMC will net $2.5 billion in cash proceeds.
Marsh and Great-West Lifeco had signed a definitive agreement for the transaction on February 1 (InvestmentNews, February 1) .
“[Great-West] understands our business, have a long term view, and are financially very strong,” said Putnam president and chief executive Charles E. Haldeman, Jr., according to a statement.
More than 90% of shareholders in Putnam’s 105 funds endorsed the pending sale on May 15.
As of June 30, Boston-based Putnam had $193 billion in assets-including $121 billion in mutual fund assets and $72 billion in institutional assets.