Ameriprise to Acquire J.&W. Seligman

Ameriprise Financial, Inc. has agreed to acquire asset management firm J.&W. Seligman&Co. Incorporated.

The deal is reported to total $440 million, and is likely to close in the fourth quarter of 2008.

According to a company statement, benefits to Ameriprise from the acquisition include:

  • The addition of Seligman’s approximately $3 billion in hedge fund assets substantially increases the company’s alternative investment activities;
  • Seligman’s investment management capabilities add breadth and depth to Ameriprise’s RiverSource multi-investment boutique strategy. The transaction adds Seligman’s technology investment team, led by Paul Wick, and its accomplished growth team, while its value team complements strong RiverSource value offerings;
  • The transaction accelerates the company’s third-party distribution reach and scale, and substantially increases its existing wholesaling force.

Seligman will retain its investment management teams and will continue to use its brand names under the RiverSource umbrella.

“This transaction will strengthen two great organizations, bringing together complementary talent that will create an even stronger asset management business,” said Brian Zino, president of J. & W. Seligman, in the announcement. “As part of the larger Ameriprise Financial organization, Seligman will be well positioned to increase distribution, grow assets and expand our service offerings to clients and their advisers.”

New York-based Seligman manages approximately $18 billion in assets in open- and closed-end funds, hedge funds, and institutional accounts.