Janus Henderson (JHG)’s Acquisition is a “Great Move,” Says Jim Cramer

We recently published 10 Stocks Jim Cramer Discussed.  Janus Henderson Group plc (NYSE:JHG) is one of the stocks on Jim Cramer discussed.

Janus Henderson Group plc (NYSE:JHG) made the news earlier this week after it was revealed that hedge fund Trian Fund Management and venture capital firm General Catalyst had agreed to buy the firm for a $7.4 billion price tag. The announcement came after the asset manager received an offer from the due in October, where they offered to acquire a stake in it for $46 per share. After the announcement, Janus Henderson Group plc (NYSE:JHG)’s shares closed 3.1% higher. After the announcement, Evercore ISI lowered its share price target for the firm to $49 from $50 and kept an In Line rating. The financial firm remained skeptical about the multiple offered for Janus Henderson Group plc (NYSE:JHG) as it noted that the asset manager had experienced strong and consistent quarterly growth. Cramer discussed the deal as well and commented on the growth:

“Yeah it looks like that Nelson Peltz and the group are buying Janus. Now this is a, it’s 47, doesn’t look like a premium, but you go back to October when people first talking about, you got a nice premium. What matters here is this is democratization play, but people don’t want to be, from what I can tell, people don’t want to be public anymore. They want to make dramatic changes to be able to, for, get individuals to be able to be in lots of things that they’re not allowed in. But you will not know it right now if you are in Janus. Janus has had a whole bunch of quarters from being up, I remember all the quarters they weren’t being up. So this is a very significant move from the point of view of, I think it’s a trend. I think this is the first. I think people don’t want to be public. I think they can’t make the moves they want to make. A lot of companies have to change the way they do business. If they are going to advance. And I think that’s what Janus has to do. Nelson will be in there helping. Janus people are going to be continuing to run the company. I brig it out just because this is the kind of deal I expect to see more and more of. It’s one where you just say, you know, being public, you can’t get the job done because you’re going to miss too many quarters.

“When I look at this I just say, you can’t really get AI in there and try to change the whole makeup of a company publicly, cause you’ll miss quarter after quarter after quarter. Janus doesn’t miss quarters. So I think it’s a great move. . .the Janus people continue to be able to run it. I just want people to keep in mind that it doesn’t change what’s going on at Janus. It does say that they’re going to go toward democratization, being able to be in everything.”

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Disclosure: None. This article is originally published at Insider Monkey.