A Midwestern life insurer has agreed to acquire an old-line money manager.
Ameriprise Financial Inc., Minneapolis, has agreed to pay $440 million in cash for J. & W. Seligman & Company Inc., New York, a privately held asset management firm founded in 1864.
Seligman manages about $18 billion in assets in mutual funds, hedge funds and institutional accounts.
Ameriprise hopes to complete the deal by Dec. 31, the company says.
Ameriprise says it hopes to profit from the addition of Seligman’s $3 billion hedge fund operation and its highly regarded investment management and research operations.
“This transaction reinforces our growth strategy, and in particular our efforts to grow our higher-margin businesses,” Ameriprise Chairman Jim Cracchiolo says in a statement. “We are committed to prudent use of our capital, and we will continue to maintain strong capital and liquidity positions once this acquisition closes.”