Mutual fund company Waddell & Reed Financial Inc. has agreed to buy Austin, Calvert & Flavin Inc., a San Antonio investment management firm that caters to high-net-worth and institutional clients.

The price was not released. Waddell & Reed, based in Overland Park, has $28.5 billion of assets under management. ACF has $1.4 billion.

The companies said Waddell & Reed, which manages 36 mutual funds, would be able to shift higher-end clients to its new unit and that ACF gains research capabilities and investment management expertise.

ACF, a privately held firm, manages investments for trusts, wealthy clients, and pension plans, focusing on clients in central and southern Texas. It will retain its name, employees, and investment philosophy, the companies said.

Waddell & Reed is the investment adviser, underwriter, and distributor for the United Group of Mutual Funds, Waddell & Reed Funds Inc., and Target/United Funds Inc. They are sold through the firm's 186 offices nationwide.

The deal is expected to close in the next 60 days.

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