Ameriprise will buy Columbia Management's long-term asset management business in a deal expected to close in spring 2010. It had $165 billion in equity and fixed-income assets under management as of June 30. Columbia's cash business was not included in the deal.
B of A said the Minneapolis financial planning services company will pay between $900 million and $1.2 billion, to be determined by asset flows and investor consents.
The business sale would further pad capital at B of A, which raised $33.9 billion this summer following the government's stress tests.
The $2.3 trillion-asset Charlotte company also has $45 billion in capital from the Troubled Asset Relief Program; executives have said they are working on a plan to start repaying those funds in installments.