T. Rowe Price stock jumped 7.7% in Thursday premarket trading after Goldman Sachs (NYSE:GS) said it plans to acquire up to $1B in T. Rowe Price (NASDAQ:TROW) common stock, equaling a stake of up to 3.5%, as part of a collaboration agreement.
The alliance will focus on offering public and private market investment products for retirement and wealth investors.
“With Goldman Sachs’ (NYSE:GS) decades of leadership innovating across public and private markets and T. Rowe Price’s expertise in active investing, clients can invest confidently in the new opportunities for retirement savings and wealth creation,” said Goldman Chairman and CEO David Solomon.
Glenn August, founder and CEO of OHA, T. Rowe’s (NASDAQ:TROW) private markets platform, said, “This strategic collaboration greatly enhances T. Rowe Price’s and OHA’s ability to deliver a wider range of investment strategies, focusing on accelerating innovation and creating new products to serve client needs.”
Goldman Sachs (GS) intends to acquire the T. Rowe Price (TROW) shares through a series of open-market purchases.
Key highlights of the collaboration include: new co-branded target-date strategies; jointly created, co-branded model portfolios; new strategies on multi-asset offerings; and personalized advice solutions and advisor managed accounts.
Goldman Sachs (GS) stock gained 0.3% in premarket trading.