Pittsburg, Pennsylvania-based Federated Investors
has agreed to buy $29 billion in money market assets from Alliance Capital Management
Federated will pay $25 million in cash and an estimated $93 million in payments (to be based on revenues) spread over five years to Alliance.
The boards of directors of both companies have approved the transaction, which they expect will close by the third quarter of 2005.
Upon shareholder approval, Federated will move the assets of 22 Alliance money market funds into 21 of its own similar money market funds.
Federated managed $125.5 billion in money market assets and $178 billion in total assets at the end of September.
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