Amvescap said it will buy the Wheaton, Illinois-based business, which oversees more than $3.5 billion of assets, for an initial $60 million, plus payments of at least $170 million based on management fee performance, and an amount based on growth in annual management fees, Reuters reported.
The transaction, which has to be approved by Amvescap’s board of directors and shareholders of PowerShares’ ETFs, is expected to close in the second or third quarters of 2006, Amvescap said in a statement .
“The addition of PowerShares ETFs is a natural extension of our core mission to provide a broad range of investment management solutions to our diverse clients across the globe,” Marty Flanagan, president and CEO of Amvescap, said in the statement.
PowerShares is the advisor and sponsor of PowerShares XTF, a family of ETF products. Amvescap is one of the world’s largest listed fund managers by market capitalization and is the parent of the Invesco and AIM fund brands.
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