NEW YORK (CNNfn) - In the largest takeover of a U.S. mutual fund company by an overseas firm, Britain's Invesco PLC on Monday said it will acquire Houston-based AIM Management Group Inc. for $1.6 billion in stock and cash.
Ending weeks of speculation that a merger was forthcoming, Invesco agreed to pay $1.1 billion in stock and $500 million in cash for control of closely held AIM. The merged company, to be called Amvesco, will manage about $150 billion.
AIM currently manages about $58 billion and is the 11th largest U.S. fund company. Invesco manages $91 billion and has long sought to strengthen its contingent of international and sector funds.
AIM operates 33 funds sold through brokers. The company is known for its aggressive bets on growth stocks and has performed exceedingly well in the ongoing bull market. It reported sales of more than $15 billion in the year ending June 30.
Under terms of the agreement, Invesco Chairman Charles Brady will become chairman of the combined company. AIM's chairman, Charles Bauer, is expected to serve as vice chairman after the merger.