Deutsche Bank announced Monday that it had signed a definitive agreement to sell the New York City, Philadelphia, Cincinnati, and Chicago offices of Scudder Private Investment Counsel to Legg Mason Inc., a Baltimore broker and asset manager.
The deal calls for Legg Mason to pay $55 million at closing, which is expected this quarter, and up to $26.3 million after one year based on revenues of the acquired business. The transaction includes about $5.8 billion of billable assets under management.
Scudder Private Investment Counsel's chief investment officer and its portfolio managers, including the managing directors of each of the four offices, have signed long-term job agreements with Legg Mason Investment Counsel LLC, a wholly owned subsidiary formed to house the purchased offices.
Deutsche Bank said in June that it was selling the Scudder firm's Boston office to Eaton Vance Corp. of Boston. The price was not disclosed; the deal closed July 2. The office managed about $2.5 billion of assets.
The Los Angeles, Orange County, and San Francisco offices of Scudder Private Investment Counsel have been integrated into Deutsche's private wealth management business. But the unit's business model "differs from [Private Investment Counsel]'s investment-centered business model," Gloria S. Nelund, Deutsche Bank's head of U.S. private wealth management, said in a press release.
