Asset managers returning from the long weekend were jolted Tuesday morning by the news that one of the major pure-play consultants is changing hands. Callan Associates is selling to Mercer in a deal that creates one of the largest investment consulting businesses in the US. The deal, terms of which were not disclosed, is expected to close towards the end of this quarter.

Callan's sale narrows the field of pure plays to Frank Russell, Wilshire Associates, RogersCasey, Evaluation Associates, Capital Resources Advisors, Ennis, Knupp & Associates, R.V. Kuhns & Associates, The Marco Consulting Alliance and DeMarche Associates.

“Callan’s solid US presence complements our US investment consulting strength, along with our strong positions in Canada, Europe and Asia Pacific," said M. Michele Burns, chairman and CEO of Mercer, in a news release.

"This transaction demonstrates Mercer’s commitment to invest in businesses that provide long-term strategic growth and in high-quality investment consulting services that benefit clients," Burns added.

For his part, Callan chairman and CEO Ronald Peyton said that by joining forces with Mercer "we can offer clients a wider range of tools and resources, top-notch professional advice and enhanced research, educational and quantitative services."  

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