AMVESCAP signed an agreement to acquire PowerShares Capital Management, a provider of exchange-traded funds, confirmed Ivy McLemore, spokesman for AIM Investments, AMVESCAP's mutual funds subsidiary. Financial terms were not disclosed; the deal is expected to close in the second or third quarter. AIM will distribute PowerShares' ETFs, pending regulatory approval, said Mr. McLemore. The ETFs - the first AMVESCAP would offer - would be available to 401(k) plan sponsors.
PowerShares, which will keep its name after the acquisition, manages more than $3.5 billion in assets in 36 ETFs.