Federated Investors to acquire Clover Capital Management

by Richard Kilner

Story link: Federated Investors to acquire Clover Capital Management

Investment management firm Federated Investors has announced that it is to take over Clover Capital Management, a Rochester, NY-based investment manager.

The deal is expected to go through in Q4 of this year, and was announced by J. Christopher Donahue, Federated’s CEO, and Michael E. Jones, Clover’s CEO.

Clover Capital, which specialises in value investments, has approximately $2.8bn assets under management and employs an approach rooted in rigorous research and quantitative analytic technology.

The firm is expected to retain its base in Rochester, with Jones and the present staff remaining in place to lead the organisation.

The deal has received approval from Federated’s board of directors, and Clover’s shareholders, with an expected initial purchase price of $36m.

A series of contingent payments are included in the deal, which could total $57m over the next five years, according to growth.

Clover’s key equity investment staff have already signed employment agreements with Federated, and it is anticipated that all Clover’s staff will become employees of Federated and its subsidiaries.