NEW YORK (HedgeWorld.com)–Lehman Brothers Holdings Inc. and Neuberger Berman Inc. agreed on a US$2.625 billion deal that will result in a money manager with more than US$100 billion in assets, including hedge funds and other alternative investments.
While Lehman relies heavily on bond trading for revenue, Neuberger Berman is focused on products for high-net-worth investors. These funds and accounts based on traditional and alternative strategies presumably will be distributed through the Lehman network once the acquisition is complete.
Neuberger is to become part of Lehman’s wealth and asset management division, which is headed by Theodore Janulis. Neuberger’s current chief, Jeffrey Lane, will be a vice chairman of Lehman Brothers, as well as chairman of the wealth and asset management division.
According to the deal, each Neuberger Berman shareholder will receive the equivalent of US$41.48 a share, consisting of US$9.49 in cash and 0.496 shares of Lehman Brothers common stock. The 32 active Neuberger partners who lead most of the wealth management teams will convert their shares into cash and Lehman Brothers stock on the same basis as other shareholders.