Waddell & Reed Financial, Inc.
), the mutual fund management and distribution company headquartered in Overland Park, Kansas, announced today that it has agreed to acquire San Antonio based Austin, Calvert & Flavin, Inc.
(ACF), a privately held investment management firm.
The deal will close in the next two months, according to the company, and ACF will continue to operate under its existing name with the same employees and investment philosophy as a wholly-owned subsidiary of Waddell & Reed. Waddell & Reed intends to acquire all of the shares of ACF for cash.
Waddell & Reed, founded in 1937, manages 36 mutual funds, and has a total of $28.5 billion in assets under management. The firm serves as investment advisor, underwriter and distributor for the United Group of Mutual Funds, Waddell & Reed Funds, Inc., and the Target/United Funds, Inc.
ACF, founded in 1981, manages more than $1.4 billion for trusts, high net worth families and individuals, and pension plans of corporations, hospitals, schools, labor unions, endowments, and foundations.
"ACF's extensive experience in ... meet(ing) the needs of high net worth families and individuals will add an important capability to allow us to better serve the increasingly complex needs of our many longtime mutual fund shareholders whose investments have grown dramatically over the years," said Henry Herrmann
, president and chief investment officer of Waddell & Reed.
"Our clients are the real beneficiaries of this strategic move because we now have a broadened horizon for growth and far greater resources available to support the investment process," said Edward H. Austin, Jr.
, principal of ACF. "We gain access to a wealth of investment talent and especially strong research resources, while Waddell & Reed will be able to utilize our separate account management expertise for some of their clients. This is clearly a win/win situation."
Stay ahead of the news ... Sign up for our email alerts now