Calamos Asset Management Founder, CEO to Take Company Private

Dec 20 2016 | 6:26pm ET

The founder and CEO of Calamos Asset Management have announced plans to take the asset manager private in a deal offering $8.25 per share for shares of the company not already owned by them or their affiliates.

The transaction is subject to the execution of definitive merger documents, but the company has agreed in principal to the terms. Calamos’s common stock, which came public through a 20-million share IPO in October 2004 at $18, rose to $8.39 following the announcement on Monday, essentially erasing the 12% premium initially represented by the offer price. 

Calamos and his family retained control following the IPO, owning a second class of stock that represents 97.4% of the combined voting power of all classes. All told, nearly 79% of Calamos Asset Management is owned by Calamos, his family and CEO John Koudounis through a separate entity named Calamos Partners.

“As investors at Calamos, we have always taken the long view,” said Calamos in a statement. “I believe a fully private ownership structure will enable John Koudounis to focus on managing our business to his vision for our firm's long-term growth."

“Being a fully private company - consistent with 95% of asset managers today - will allow us to manage the business with the same long-term view that we apply to our investment approach,” added Koudounis. 

Calamos has struggled recently, with AUM falling to $18.5 billion as of November 30, down from $26.5 billion three years ago, and declines in both revenue and net income in each of the last five consecutive years. Koudounis came aboard in March in management overhaul, which has since included the hiring of former USAA Investments executive Matthew Freund as co-CIO in early November.

Based near Chicago, Calamos Investments invests in U.S. growth equity, global equity, convertible, multi-asset and alternative strategies through separately managed portfolios, mutual funds, closed-end funds, private funds, and UCITS funds. 

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