Updated with clarification
DiMeo Schneider & Associates agreed to acquire Fiduciary Investment Advisors, a deal crafted by the top executives of each company who have known each other for 30 years.
"We've talked about it together, and even talked about it eight or nine years ago," said Mark Wetzel, president of Fiduciary Investment Advisors, Windsor, Conn., referring to Robert DiMeo, the CEO of DiMeo Schneider & Associates.
Mr. Wetzel even looked at other companies, but he chose DiMeo Schneider because he believed the companies had similar corporate cultures, similar strategies and greater opportunities together rather than separately, Mr. Wetzel said.
The transaction, announced Jan. 22, is expected to close during the second quarter. Terms were not disclosed.
"Both firms are growing," said Mr. Wetzel, who will become president of DiMeo Schneider & Associates.
"We are not right-sizing," Mr. DiMeo added. "Both firms have been hiring."
Mr. DiMeo said the acquisition would produce a combined company with $180 billion assets under administration, improving consulting competitiveness in the largest client segment — institutions with $50 million to $500 million in assets. The company has several clients with assets exceeding $1 billion.
"Scale matters," said Mr. DiMeo. The combined company "will have greater outreach" to clients and greater research capacity than the two firms operating separately.
DiMeo Schneider has $96 billion in assets under administration and 105 employee; Fiduciary Investment Advisors has $84 billion AUA and 76 employees.
Both companies have similar clients — 401(k) plans, 403(b) plans, defined benefit plans, endowments and private clients.
