Merrill Lynch agreed to purchase AMVESCAP Retirement, the U.S. defined contribution record-keeping business of AMVESCAP PLC, said Patrick Cassidy, director of strategic alliances at Merrill Lynch. Terms were not disclosed. AMVESCAP Retirement would become part of Princeton Retirement Group, a recently created Merrill Lynch subsidiary. The deal would add about $20 billion in client assets to Merrill Lynch Retirement Group's current client asset total of $329 billion.
"This acquisition is in keeping with our growth strategy to partner with select organizations to provide best-in-class services to businesses and their employees," Michael Falcon, COO for Merrill Lynch Retirement Group, said in a statement.
"This is a consolidating market," and AMVESCAP Retirement can "offer retirement services to other financial institutions and intermediaries," Mr. Cassidy said.
Charles W. Brady, executive chairman of AMVESCAP PLC, said in a statement: "We believe the sale of AMVESCAP Retirement's business to Merrill Lynch, a company we enjoy a strong and long-standing business relationship with, is the right thing for our employees, our clients and their participants."
The deal is expected to close within 60 to 90 days, pending regulatory approval, said Merrill Lynch spokesman Erik Hendrickson and AMVESCAP spokesman Bill Hensel.