(Source: PRNewswire)
PHILADELPHIA, Aug. 19 /PRNewswire-FirstCall/ -- Lincoln Financial Group (NYSE: LNC) today announced that it has signed a definitive agreement to sell Delaware Management Holdings, Inc. and its subsidiaries (Delaware Investments), its asset management unit, to Macquarie Group, a Sydney, Australia-headquartered global provider of banking, financial, advisory, investment and funds management services. Lincoln Financial expects to receive cash consideration of approximately $428 million, subject to certain closing adjustments. The transaction is expected to close on or around December 31, 2009, subject to regulatory approvals and other customary closing conditions.
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"We believe the greatest opportunities for growth and differentiation for Lincoln Financial going forward are centered on our principal insurance and retirement businesses," said Dennis R. Glass, President and CEO, Lincoln Financial Group. "This transaction will allow us to focus both management and capital resources on these core businesses."
Delaware Investments will continue managing Lincoln Financial general account insurance assets under a long-term contract, and will provide additional sub-advisory services. Lincoln Financial remains committed to providing access to high-quality asset management services by selecting best-in-class sub-advisors, including Delaware Investments, for its retirement and insurance products.
Glass added, "We look forward to continuing our strategic relationship with the Delaware Investments team as it becomes a key part of Macquarie's global asset management platform."
By close, Lincoln Financial expects that its distribution team for Delaware Investments' funds and separately managed accounts will move from its wholesale distribution arm, Lincoln Financial Distributors, Inc., to Delaware Investments.
The proceeds of the sale will be used for general corporate purposes, including potentially contributing to retiring a portion of the CPP preferred shares outstanding when it is appropriate to do so.
Goldman, Sachs & Co. acted as financial advisor to Lincoln Financial Group.
About Lincoln Financial Group
Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. With headquarters in the Philadelphia region, the companies of Lincoln Financial Group had assets under management of $181 billion as of June 30, 2009. Through its affiliated companies, Lincoln Financial Group offers: annuities; life, group life and disability insurance; 401(k) and 403(b) plans; savings plans; mutual funds; managed accounts; institutional investments; and comprehensive financial planning and advisory services. Affiliates also include: Delaware Investments, the marketing name for Delaware Management Holdings, Inc. and its subsidiaries; and Lincoln UK. For more information, including a copy of our most recent SEC reports containing our balance sheets, please visit www.LincolnFinancial.com.
Forward Looking Statements -- Cautionary Language
Certain statements made in this press release are "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA").
