Pittsburgh-based Federated Investors, Inc. and the PNC Financial Services Group announced Tuesday that they reached a definitive agreement for Federated to acquire certain components of PNC Capital Advisors LLC’s (PCA) investment-management business.
The transaction would include the reorganization of PNC’s family of 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.
“We are pleased to be working with PNC on this transaction,” J. Christopher Donahue, president and CEO of Federated Investors, Inc., said. “Federated is committed to helping PNC’s clients reach their financial goals by providing solid product performance, a range of compelling investment solutions and superior client service.”
Federated will pay PNC an estimated total purchase price of $52 million when the transaction is completed.
Completion of these transactions is subject to certain regulatory approvals and other customary conditions. The deal is expected to close in the fourth quarter of 2019.