Amsterdam-listed CVC said on Monday it will purchase Marathon through a combination of cash and equity.
The transaction carries a base valuation of up to $1.2 billion, consisting of $400 million in cash and up to $800 million in CVC equity, according to a company statement.
The deal also includes earnout consideration linked to Marathon’s future financial performance over the period from 2027 to 2029, of up to $200 million in cash and $200 million in CVC equity, News.Az reports, citing Bloomberg.
It “significantly expands CVC’s access to the large and fast-growing US market through Marathon’s market-leading positions in asset-based, real estate, opportunistic and public credit,” according to the statement.
The acquisition is expected to be accretive to earnings-per-share from 2028 onwards, before any revenue or cost synergies.
The combination will boost fee-paying assets under management at CVC’s credit unit to about €61 billion ($72 billion). Marathon’s founders — Bruce Richards and Lou Hanover — will continue to co-head the Marathon credit strategies, and Marathon will be rebranded CVC-Marathon, according to the statement.
Founded in 1998, Marathon oversees more than $24 billion in assets with a team of roughly 190 global professionals, according to its website.
