Waddell & Reed Financial, looking to expand its position in the 403(b) market, will acquire The Legend Group, a mutual fund distribution and retirement planning company. It will pay $61 million in cash and contingent cash payments of up to $14 million over three years to acquire the companys stock. The transaction likely will be completed within 60 days, according to Waddell & Reed spokesman Tyler Towery. Legend will continue to operate under that name, and founder Philip C. Restino will remain with the firm.
Waddell & Reed, with $37.3 billion in assets under management, $5.5 billion of which is from institutions, is also a distributor of the United Group of Mutual Funds, the Waddell & Reed Funds and the Target/United Funds. Legend had about 61,000 clients, primarily school districts and other not-for-profit organizations, and $3.1 billion in third-party retirement plan mutual fund assets as of Dec. 31.