and his team have finished their biggest acquisition yet, and they're saving a bit more green than expected.
| David C. Brown|
Victory Capital Holdings, Inc.
Yesterday, Brown, chairman and CEO of Victory Capital
that the publicly traded multiboutique has closed on its planned acquisition of USAA Asset Management Company
. Based on pre-close figures from April 30, the deal more than doubles Victory's size to $142.3 billion in AUM. USAA Investments president Brooks Englehardt
now serves as president of Victory's USAA Investments franchise.
The Rivard Report
, the San Antonio Business Journal
, and the San Antonio Express-News
all reported on the deal's close.
The Victory team has increased their deal savings estimates for a second time. They now expect cost synergies of $120 million, up from $110 million (their May estimate
) and from $100 million (their November estimate
Personnel moves have changed, too. When the deal was unveiled last November, a USAA spokesman told MFWire
that Victory planned to keep more than 300 USAA AMC employees on board, while fewer than 100 USAA employees might leave after the deal. Yet now, the Rivard Report
reports that Victory hired 230 USAA employees as part of the deal, while about 60 left the companies.
Though Victory is currently based in the Cleveland, Ohio area, the plan is for the firm's HQ to shift
to USAA AMC's hometown of San Antonio, Texas. Victory has agreed to add 51 new jobs in the San Antonio, move down six key executives, including Brown himself, and keep 300 existing USAA jobs. Yet the firm will also continue to keep a big presence in Brooklyn, Ohio (a Cleveland suburb).
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