Putnam Investments will ‘maintain a significant presence in Boston’ after sale to Franklin Templeton for $925 million

The Boston-based global money management firm Putnam Investments — which over the decades has been a staple in the community with its logo spotted at sports games — has been sold to Franklin Templeton for $925 million, company officials announced on Wednesday.

Franklin Templeton has entered into an agreement to acquire Putnam Investments from Great-West Lifeco, Inc., for about $925 million of primarily equity consideration.

Founded in 1937 by George Putnam as one of the first balanced mutual funds, Putnam has offices in Boston, London, Munich, Tokyo, Singapore and Sydney. The investment firm has $136 billion in assets under management, as of last month.

Following this sale, Putnam will still “maintain a significant presence in Boston, and Franklin Templeton is excited to establish a foothold in this important market,” a company spokesperson said on Wednesday.

“There will be continuity across Putnam’s investment teams, including portfolio management responsibilities, as well as ongoing use of the Putnam brand on key offerings,” the spokesperson added.

Franklin Templeton will pay about $825 million in stock consideration up-front at closing and $100 million in cash 180 days after closing for 100% of Putnam.

“Critical to this transaction is the strong alignment between our organizations,” Robert Reynolds, president and CEO of Putnam, said in a statement. “We share a client-centric culture, a core belief in active management, a collaborative and research-based investment approach, and a long-held commitment to fundamental investment principles.

“We look forward to joining Franklin Templeton in this next phase of our growth, as we come together to serve our clients, upholding our commitment to them and their needs,” Reynolds added.

Great-West will provide an initial long-term asset allocation of $25 billion to Franklin Templeton’s specialist investment managers within 12 months of closing — with that amount expected to increase over the next several years.

Great-West will become a long-term strategic shareholder in Franklin Resources, Inc., with about a 6.2% stake.

“This is a compelling transaction for Franklin Templeton, and we are excited about the numerous opportunities that will be unlocked by this long-term strategic partnership with the Power Group of Companies including Great-West,” said Jenny Johnson, president and CEO of Franklin Templeton. “Power and Great-West are global leaders across financial services, particularly in the wealth, insurance and retirement channels.

“With outstanding investment performance, Putnam will add complementary capabilities to our existing specialist investment managers to meet the varied needs of our clients and will increase Franklin Templeton’s defined contribution AUM (assets under management),” Johnson added. “We are pleased to welcome Great-West as a strategic investor, along with the impressive team at Putnam.”