Federated Investors has acquired the $5 billion in money market funds of Lehman Brothers. Terms were not disclosed.
Federated will acquire approximately $4 billion in six institutional funds; it will offer three retail funds to replace three Lehman funds with about $1 billion.
Under the agreement, 300 Lehman brokers also will use Federated funds for their cash sweep accounts. Federated officials hope in the future, Lehman brokers will sell other Federated funds.
Three of the institutional funds are merging into existing Federated funds. The three other funds will carry a new name.
