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Business Combinations
 12 Months Ended
Dec. 31, 2012
Business Combinations  
Business Combinations

18.   Business Combinations

        On June 29, 2012, the Company completed majority investments in Veritable, LP ("Veritable") and Yacktman Asset Management LP ("Yacktman"). As discussed in Note 21, the Company also completed an additional minority investment in BlueMountain Capital Management LLC ("BlueMountain").

        The Company completed its purchase price allocation for Veritable by using a financial model that includes assumptions of market performance, net client cash flows and discount rates. The excess of the enterprise value over the net assets acquired was recorded as goodwill, of which 100% was attributed to the Company's High Net Worth segment. The consideration paid (less net tangible assets acquired) is deductible for U.S. tax purposes over a 15-year life.

        The Company completed its purchase price allocation for Yacktman by using a financial model that includes assumptions of market performance, net client cash flows and discount rates. The excess of the enterprise value over the net assets acquired was recorded as goodwill, of which 91% and 9% was attributed to the Company's Mutual Fund and High Net Worth segments, respectively. The consideration paid (less net tangible assets acquired) is deductible for U.S. tax purposes over a 15-year life. As part of this investment, the Company is contingently liable to make payments of up to $75.0 million over the next three to five years upon the achievement of specified revenue targets. The Company currently projects contingent payments totaling $55.6 million, and as of December 31, 2012, the present value of these payments was $31.0 million.

        The purchase price allocations for these investments are as follows:

 
   Veritable   Yacktman  

Consideration paid

   $ 116.8   $ 301.0  

Non-controlling interests

     30.2     217.4  

Contingent payment obligations

     —     24.8  
           

Enterprise value

   $ 147.0   $ 543.2  
           

Acquired client relationships

   $ 85.1   $ 367.5  

Tangible assets, net

     2.7     9.0  

Goodwill

     59.2     166.7  
           

 

   $ 147.0   $ 543.2  
           

        Unaudited pro forma financial results are set forth below, giving consideration to the investments and acquisitions in 2012, as if such transactions occurred as of January 1, 2011, assuming the revenue sharing arrangements had been in effect for the entire period and after making certain other pro forma adjustments.

 
   For the Years Ended December 31,  
 
   2011   2012  

Revenue

   $ 1,810.9   $ 1,881.0  

Net income (controlling interest)

     179.6     186.0  

Earnings per share—basic

   $ 3.47   $ 3.60  

Earnings per share—diluted

   $ 3.39   $ 3.51  

        The unaudited pro forma financial results are not necessarily indicative of the financial results had the investments been consummated at the beginning of the periods presented, nor are they necessarily indicative of the financial results expected in future periods. The pro forma financial results do not include the impact of transaction and integration related costs or benefits that may be expected to result from these investments.

        New Affiliate investments during the twelve months ended December 31, 2012, contributed $88.0 million and $14.5 million to the Company's revenue and earnings, respectively.