XML 61 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
Business Combinations
 6 Months Ended
Jun. 30, 2014
Business Combinations [Abstract]  
Business Combinations
Business Combinations
On March 31, 2014, the Company completed its majority investment in SouthernSun Asset Management, LLC ("SouthernSun"). The Company's purchase price allocation for SouthernSun is provisional and was performed using a financial model that includes assumptions of expected market performance, net client cash flows and discount rates. These provisional amounts may be revised upon completion of the final valuation. The excess of the enterprise value over the net assets acquired was recorded as goodwill, of which 37%, 23% and 40% was attributed to the Company's Institutional, Mutual Fund and High Net Worth segments, respectively. The consideration paid (less net tangible assets acquired) will be deductible for U.S. tax purposes over a 15-year life.
On June 30, 2014, the Company completed its majority investment in River Road Asset Management, LLC ("River Road"). The Company's purchase price allocation for River Road is provisional and was performed using a financial model that includes assumptions of expected market performance, net client cash flows and discount rates. These provisional amounts may be revised upon completion of the final valuation. The excess of the enterprise value over the net assets acquired was recorded as goodwill, of which 31%, 51% and 18% was attributed to the Company's Institutional, Mutual Fund and High Net Worth segments, respectively. The consideration paid (less net tangible assets acquired) will be deductible for U.S. tax purposes over a 15-year life.
The provisional purchase price allocation for these investments are as follows:
 
 
Total
Consideration paid
 
$
240.3

Non-controlling interests
 
116.6

Enterprise value
 
$
356.9

 
 
 
Acquired client relationships
 
$
195.9

Tangible assets, net
 
11.0

Goodwill
 
150.0

 
 
$
356.9


Pro forma financial results are set forth below assuming these investments occurred on January 1, 2013, the revenue sharing arrangement had been in effect for the entire period and after making certain pro forma adjustments.
 
 
For the Six Months Ended June 30,
 
 
2013
 
2014
Revenue
 
$
1,074.1

 
$
1,262.4

Net income (controlling interest)
 
129.9

 
182.3

Earnings per share—basic
 
2.46

 
3.34

Earnings per share—diluted
 
2.39

 
3.26


The 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 six months ended June 30, 2014, contributed $12.5 million and $1.2 million to the Company's revenue and earnings, respectively.
On April 29, 2014, the Company announced that it will acquire a majority equity interest in Veritas Asset Management LLP. The Company anticipates this transaction will close in the third quarter of 2014.