Federated Investors will acquire the international equity business of Rochdale Investment Management, said Federated spokeswoman Meghan McAndrew. Under the terms of the agreement announced today, the $321 million Rochdale Atlas Portfolio mutual fund will become the Federated InterContinental Fund, and will be co-managed by portfolio managers Audrey H. Kaplan and Geoffrey Pazzanese; Mr. Pazzanese was senior quantitative analyst of the Rochdale fund. Federated will also acquire Rochdales proprietary quantitative investment model used to manage the Atlas fund.
Rochdale will continue to manage more than $2.2 billion in assets.
According to an 8-K filing today, Federated will make an initial payment of $5.75 million when the deal closes in the third quarter, and as much as $20 million in two additional payments in 2010 and 2012, contingent on asset growth and fund performance. Additional contingent payments will be paid semiannually over the coming five years, based on certain revenue earned by Federated from the Federated InterContinental Fund.