City National Corp. will acquire Independence Investment from Manulife Financial in an all-cash deal, said City National spokesman Cary Walker. Terms of the deal aren't being disclosed, according to a news release from City National. Independence, with $7.5 billion in institutional money, all in U.S. equities, will become an affiliate of Convergent Capital Management, the Chicago-based asset management holding company that City National acquired in 2003.
In a telephone interview, Rick Adler, Convergent's president and CEO, said Independence's senior executives signed multiyear employment agreements and will come to hold "a significant stake in the business on a going-forward basis."
The deal, expected to close late in the second quarter, will make Independence Investment its 12th, and largest, asset management affiliate, and lift the group's assets under management to nearly $27 billion, according to City National's news release.
Berkshire Capital Securities assisted Manulife and Independence with the transaction. Manulife spokesman Brian Carmichael declined to provide further details.