Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Federated To Acquire MDT Advisers Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, May 12, 2006

Federated To Acquire MDT Advisers

by: Armie Margaret Lee

Federated Investors Inc. said Friday it has agreed to buy quantitative equity manager MDT Advisers for up to $240 million.

Cambridge, Massachusetts-based MDT Advisers, a unit of MDTA LLC, manages roughly $6.8 billion in separately managed account portfolios and institutional accounts, and approximately $300 million in mutual funds that utilize its quantitative investment process.

The deal, which is expected to close in July 2006, includes initial purchase payments of approximately $110 million, most of which will be paid at closing, and a series of contingent payments totaling up to $130 million over the next three years based on growth.

MDT's investment employees will remain with the firm in Cambridge and continue to manage portfolios, Federated said.

"Combining the proven investment acumen of MDT's team and process with Federated's distribution muscle will give our firm a powerful new growth opportunity," said J. Christopher Donahue, president and chief executive officer of Federated, in a statement.

The acquisition, he said, will boost Pittsburgh-based Federated's product lineup by creating a quantitative line of equity mutual funds to complement the 39 equity mutual funds. Federated's investment process combines quantitative and fundamental research.

When the transaction is completed, Federated would manage about $38.7 billion in equity assets, up 22 percent from $31.6 billion in end-March. The firm would also own approximately 90 percent of the outstanding equity interests of MDTA LLC, with the right to purchase the remaining 10 percent by June 30, 2007.

Gordon Ceresino, president and chief executive of MDT, said his firm entered the deal "not only because of [Federated's] longstanding reputation in the industry and distribution strength, but also because they share our core business values by focusing on long-term investors." 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use