Janus Capital Group Inc. (NYSE:JNS) today announced the completion of its acquisition of VS Holdings Inc., the parent company of VelocityShares, LLC ("VelocityShares"), a leading provider of unique institutionally-focused exchange-traded products (“ETPs”), including exchange-traded funds (“ETFs”), that deliver sophisticated volatility management solutions. VelocityShares will be a wholly-owned subsidiary of Janus Capital Group and will continue to operate out of its office in Darien, Connecticut.
On October 13, 2014, Janus Capital Group announced it had entered into an agreement to acquire VelocityShares. The transaction included an initial upfront cash consideration of $30 million with an additional contingent cash consideration if certain revenue targets are achieved over a four-year period.
In connection with the acquisition, and in an effort to align the interests of key employees of VelocityShares with the interests of Janus Capital Group shareholders, Janus Capital Group has awarded performance stock units ("PSUs") with an aggregate value of $19 million to five VelocityShares employees. Vesting will be based on achievement of net revenue growth targets through December 31, 2020, with no vesting prior to the second anniversary of the grant date. Janus Capital Group has issued these PSUs outside of its shareholder approved equity plans as employment inducement grants and, in accordance with NYSE Rule 303A.08, the PSU grant requires a public announcement of the award and written notice to the NYSE.
About VelocityShares, LLC
Founded in 2009, VelocityShares is dedicated to providing sophisticated investors with unique solutions for portfolio and trading risk management. The success of the firm results from delivering innovative, efficient, and intelligent products for a wide range of institutional investors. At the end of September 2014 VelocityShares had raised approximately $2 billion in assets across 21 investment products. For additional information please visit www.velocitysharesETFs.com.
About Janus Capital Group Inc.
Janus Capital Group Inc. (JCG) is a global investment firm dedicated to delivering better outcomes for clients through differentiated investment solutions. It currently has a number of distinct investment groups, including equity and fixed income teams within Janus Capital Management LLC, as well as subsidiaries INTECH Investment Management LLC and Perkins Investment Management LLC. Each brings a distinct perspective, style-specific expertise and a disciplined approach to risk. The firm’s strategy for growth and development is based on continuing to expand a range of distinctive solutions across multiple asset classes and styles including equities, fixed & other income, alternatives, asset allocation and managed volatility.
At the end of September 2014, JCG managed approximately $174.4 billion in assets for shareholders, clients and institutions around the globe. Based in Denver, JCG also has offices in London, Milan, Munich, Singapore, Hong Kong, Tokyo, Melbourne, Paris, The Hague, Zurich, Frankfurt, Dubai and Taipei.
Janus Capital Group Inc. was advised by Wells Fargo Securities LLC and Paul, Weiss, Rifkind, Wharton & Garrison LLP, and VS Holdings Inc. was advised by Freeman & Co. Securities LLC and Stoel Rives LLP.