The combined retirement, mutual fund and investment technology solutions provider will have roughly $35 billion in assets under management and $52 billion of assets under administration at closing, according to the announcement. The combined firm will also be the 6th largest provider of exchange-traded funds (ETFs).
Rydex Investments will retain its current management team and existing location/facilities in Rockville, Maryland, and will operate as a new and separate line of business under Security Benefit’s holding company, the announcement said. Other Security Benefit business lines, including Security Global Investors, Employer, Advisor and se2/business processing, will remain distinct business operations and continue to be based in Topeka, KS; Stamford, CT; San Francisco, CA; Cincinnati, OH; and Folsom, CA.
“Together, Security Benefit and Rydex Investments provide a unique, strategic partnership that will benefit clients, distribution partners and employees of both companies,” said Kris Robbins, Security Benefit chairman of the board, president and chief executive officer, in the announcement.
News of the deal squelches reported rumors that Rydex would be acquired by E*Trade Financial or Invesco (See Rydex Investments Near Reaching Deal to Sell).