Magellan Financial Group has announced it will merge with Barrenjoey Capital Partners, in a deal valuing Barrenjoey at $1.6 billion. Magellan will acquire the remaining Barrenjoey stock it doesn’t currently own through the issue of 106,838,520 new shares. Magellan Financial Group is an Australian-based global fund manager. The company provides investment management services to retail, high net worth and institutional investors.
The deal implies a total consideration of $903 million for the stake to be acquired at completion. The transaction represents a multiple of 15 times the price-to-earnings ratio, based on Barrenjoey’s last 12-month adjusted net profit of $108 million on revenue of $522 million. Magellan intends to fund an initial incremental 10 per cent interest in Barrenjoey from an affiliate of Barclays for $148.9 million through a non-underwritten institutional placement and share purchase plan priced at $8.45 per share.
Upon completion of the merger, existing Magellan shareholders are expected to hold approximately 58.2 per cent of the combined group. Barrenjoey parties are anticipated to hold 31.7 per cent, and Barclays around 4.9 per cent. These holdings are subject to shareholder and regulatory approvals.
The company has targeted completion of the merger for the second quarter of the 2026 calendar year.
