By Michael Dabaie
Federated Investors said it would acquire certain components of PNC Capital Advisors LLC's investment-management business from PNC Financial Services Group.
Federated will pay PNC an estimated total purchase price of $52 million when the transaction is completed, which is expected in the fourth quarter.
The proposed transaction includes the reorganization of PNC's liquidity, equity and fixed-income mutual funds into corresponding Federated mutual funds, the acquisition of a portion of PNC's separate account and separately managed account business, and the transition of a six-person international equity management team from PNC to Federated.
The deal includes about $9 billion in liquidity assets, $4.2 billion in equity assets and $700 million in fixed-income assets.
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