BOSTON - United Asset Management, Boston, has acquired Pilgrim Baxter & Associates, Wayne, Pa., for an undisclosed amount in cash and notes.
Pilgrim Baxter will retain its name and headquarters and continue operating independently. As usual with UAM's acquisitions, the Pilgrim Baxter management team - Harold J. Baxter, chairman and chief executive; Gary L. Pilgrim, president and chief investment officer; and Brian F. Bereznak, chief operating officer - will remain in charge of the firm under long-term management contracts.
"We just view them as a very fine firm. They have a nice institutional business and a nice mutual fund business," said Franklin H. Kettle, UAM's senior vice president and director of corporate development.
Pilgrim Baxter manages approximately $4 billion in mid-, small- and micro-cap domestic growth equity for institutional clients, subadvises six mutual funds. The firm offers three proprietary mutual funds and a hedge fund.
The sale is subject to regulatory approvals and approval by the shareholders of the Pilgrim Baxter funds.
The transaction is expected to close in April.