Calamos Asset Management Agrees To Be Acquired By Founder, CEO

Josh O'Neill

23 December 2016

NASDAQ-listed Calamos Asset Management has agreed to be acquired by an entity formed by its founder, John Calamos, and John Koudounis, chief executive of the firm.

Pursuant to the agreement in principle, Mr Calamos and Koudounis will commence a tender offer to acquire all of the outstanding shares of Class A common stock of Calamos Asset Management for $8.25 in cash. Shortly after the closing of this offer, any shares not tendered will be acquired in a second-step merger at the same cash price as paid in the tender offer. The agreement in principle is subject to the final negotiation and execution of a mutually satisfactory merger agreement, Calamos Asset Management said in a statement.

The firm's board of directors formed an independent special committee in October after the pair expressed an interest in a possible transaction. According to Calamos Asset Management's statement, the committee considered the various options available, including remaining as a public company, and concluded unanimously that the proposed transaction “would be fair and in the best interests of the company's public shareholders”.

Commenting on the proposed acquisition, Mr Calamos said: "As investors at Calamos, we have always taken the long view. 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."

Koudounis added: "Upon arriving at Calamos, I directed an extensive analysis of our corporate structure. Being a fully private company - consistent with 95 per cent of asset managers today - will allow us to manage the business with the same long-term view that we apply to our investment approach. By eliminating the distraction of the market's increased focus on short-term metrics, we can be singularly dedicated to improving our key performance areas."