A Connecticut-based bank announced plans to acquire Gerstein Fisher, a $3 billion, independent investment management firm.
People's United Bank is expected to finish the transaction by the end of this year via its subsidiary, People's Securities, Inc., according to a statement released Thursday.
For the bank's wealth management service, this acquisition will raise the total assets under management to about $8 billion and under administration to nearly $20 billion, according to the release.
"The transaction supports recent strategic investments in our fee income businesses and strengthens our New York franchise,” said Jack Barnes, president and chief executive officer of People's United Bank, in the statement.
Gregg S. Fisher, Gerstein Fisher's founder and chief investment officer, will join as head of quantitative research and portfolio strategy.
"We believe that our investment strategies, combined with People's United's large distribution network, will allow us to help more people invest smartly to achieve their goals than Gerstein Fisher could have on a standalone basis," said Mr. Fisher in the release.
The transaction contains a portion of contingent consideration based on the achievement of revenue growth targets and is subject to customary approvals and consents, according to the statement.