FleetBoston will assume an estimated $110 million in revolving debt, which Liberty incurred to finance sales commissions, while adding $51 billion in assets under management to the group’s holdings.
The acquisition will be made in line with the company’s efforts to diversify its client base and grow its asset management business.
The Liberty Financial companies to be acquired include:
- Colonial Management Associates
- Stein Roe and Farnham
- Crabbe Hudson Group
- Liberty Funds Services
- Newport Pacific Management
- Progress Investment Management, and
- Liberty Wanger Asset Management Company
The acquisition, subject to regulatory approvals, is expected to close at the end of the third quarter this year.