Federated Investors Inc. of Pittsburgh announced Friday that it had reached a definitive agreement to buy MDT Advisers, a quantitative equity manager based in Cambridge, Mass.
The investment manager said it would spend up to $240 million for the division of MDTA LLC. MDT Advisers manages $6.8 billion of separately managed account portfolios and institutional accounts and about $300 million of mutual funds.
It would be the seventh acquisition in two years for Federated, which has built a reputation of buying fund families from banks and others looking to get out of the mutual fund business.
The deal is expected to close in July. With the acquisition, Federated would manage about $38.7 billion of equity assets, 22% more than it was managing on March 31. Its overall assets under management stood at $217.5 billion on that date.
