Huntington Bancshares in Columbus, Ohio, has agreed to sell about $1.1 billion of money market fund assets to Federated Investors in Pittsburgh.
Financial terms of the agreement were not disclosed. The $69 billion-asset Huntington and Federated expect the deal to close in the fourth quarter.
About $870 million of assets will be transferred from the Huntington U.S. Treasury Money Market Fund into the Federated Treasury Obligations Fund; and about $236 million in prime money market assets will be transferred from the Huntington Money Market Fund to the Federated Prime Cash Obligations Fund.
Both transactions are expected to be tax free, the companies said.
"The acquisition builds on Federated's long-term relationship with Huntington by providing current Huntington liquidity-management clients access to Federated's experienced money managers and proven credit process," Christopher Donahue, chief executive of Federated, said in a news release.