Australia's Macquarie Group to buy Waddell & Reed Financial for $1.7 billion

(Reuters) – Australian financial conglomerate Macquarie Group said on Wednesday its asset management unit will buy U.S.-based investment management firm Waddell & Reed Financial Inc for $1.7 billion in cash.

Shares of Waddell & Reed soared 47% in extended trading.

The offer price of $25 per share represents a premium of 48% to Waddell & Reed’s closing price on Dec. 1, the last trading day before the announcement of the deal, the companies said.

After the deal closes, Macquarie will sell Waddell & Reed’s wealth management platform to U.S. investment advisory firm LPL Financial Holdings Inc for $300 million.

The deal is expected to close in the middle of 2021.

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