Franklin Templeton’s parent group, Franklin Resources, is set to acquire Legg Mason, creating a $1.5trn asset management firm.

The deal will see Franklin Resources pay $4.5bn, in an all-cash deal, for Legg Mason and its affiliates including the firm’s $2bn of outstanding debt.

Both firms have ETF ranges. All listed in the US, Legg Mason's 10-strong suite has eight equity and two fixed income ETFs with $1.5bn assets under management (AUM).

Meanwhile, Franklin Templeton’s LibertyQ range has 55 ETFs listed in the US, Canada and Europe with approximately $6bn AUM.

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Jenny Johnson (pictured), president and CEO of Franklin Templeton, commented: “This acquisition will add differentiated capabilities to our existing investment strategies with modest overlap across multiple affiliates, investment teams and distribution channels, bringing notable added leadership and strength in core fixed income, active equities and alternatives.”

“This transaction gives us significant scale, addresses strategic gaps and brings greater balance to our business.”