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Waddell & Reed acquired in billion-dollar sale

By Madison Parry

One of the metro’s largest public companies will sell itself to Australian financial services company Macquarie Group in a deal worth $1.7 billion. Waddell’s reported $66.2 billion in assets will be transferred with plans to resell the bulk of its wealth management business.

Kansas City-headquartered Waddell & Reed Financial Inc. has been acquired, soon to begin the merge with global financial services company, Macquarie Group.

Photo courtesy Waddell & Reed

An sale agreement worth a lofty $1.7 billion was made with Macquarie Asset Management, Macquarie Group out of Australia.

Founded in 1937 and going public in 1998, Waddell is considered to be one of the largest public companies in the area, housing its main operations in Overland Park, Kan.

Details of the sale reveal that Macquarie will buy outstanding shares of Waddell & Reed in cash for $25 a share. As of Sept. 30, 2020, Waddell & Reed Financial, Inc.’s asset management business had $68 billion of assets under management and its wealth management business had assets under administration of $63 billion, according to the company.

Following the anticipated completion of the transaction in mid-2021, Macquarie said it plans to sell Waddell & Reed’s wealth management platform to LPL Financial Holdings and “enter into a long-term partnership with Macquarie becoming one of LPL’s top tier strategic asset management partners.”

Waddell & Reed currently employs over 900 advisers at its Overland Park location, which Boston-based LPL Financial Holdings Inc. said it plans to bring on.