People's United Financial in Bridgeport, Conn., said Thursday that it has agreed to buy Gerstein Fisher, a New York wealth management firm.
The $39 billion-asset People's United did not disclose the price of the deal, which is contingent on Gerstein Fisher's reaching targets for revenue growth and requires approval from the firm's clients. It is expected to close in the fourth quarter.
People's United expects the acquisition to be modestly accretive to earnings in 2017 with an internal rate of return of more than 15%.
Gerstein Fisher has $3 billion in assets under management and utilizes a quantitative investment approach. The acquisition will increase People's United's assets under management to about $20 billion, with about $8 billion under discretionary management.
Gregg Fisher, the wealth management firm's founder and chief investment officer, would be named head of quantitative research and portfolio strategy at People's United.
Berkshire Capital Securities advised People's United and Silver Lane Advisors advised Gerstein Fisher.
People's United in June agreed to buy the $2.3 billion-asset Suffolk Bancorp in Riverhead, N.Y.