Waddell & Reed up nearly 50% after $1.7B sale to Macquarie

• Waddell & Reed Financial (NYSE:WDR) +47.8% post-market after agreeing to be acquired by Macquarie Group for $25/share, representing a ~48% premium to the stock's closing price on Dec. 1.
• Macquarie also will sell Waddell & Reed's wealth management platform to LPL Financial (NASDAQ:LPLA) for $300M and enter into a long-term partnership with Macquarie becoming one of LPL's top tier strategic asset management partners.
• As a result of the deal, Macquarie Asset Management expects assets under management will rise to ~$465B, with the combined business becoming a top 25 actively managed, long-term, open-ended U.S. mutual fund manager by assets under management.

Comments

[worldly]

i have had WDR for years and my cost is much higher than $25. does anyone think the price will bid higher or is it about as high as it can go?

What happens if we do not sell. will maquarie for us to sell?

[TraderJoeZ]

@worldly luckily, the dividends you have received over the years has effectively greatly lowered your cost basis. That said, unfortunately if the sale goes through, you will wake up one day next year with $25 per share in your brokerage, instead of your WDR shares.

[mjmair2323]

@worldly nope

[Sentinel Brit]

Glad I stayed invested in WDR. Made a couple of purchases over 3 1/2 years and it has paid off. I held on for three reasons, 1) the dividend, 2) the potential for value to return to favor and more recently 3) the potential for it to be acquired.

[LeaveTheEgoAtTheDoor]

wdr is trading above purchase price. bring on the bidding war.

[Joey River]

Brilliant move by Macquarie to increase assets under management at a low cost while Waddell and Reed shareholders and employees reap a 47% share price gain.

[Faninvestor9]

@Joey River Right on. Shrewd purchase by the folks at Mac.

[zpp]

@Joey River employees aren’t shareholders bud. All they get is to look for a new job

[TraderJoeZ]

right on, right on

[Eric Sprung]

Consolidation is just getting started in the asset management business. Long IVZ

[Gold Panda]

@esprung100 long VCTR