BlackRock to Acquire F-of-F from Quellos Group

BlackRock has agreed to acquire the fund of funds business of Quellos Group for approximately $1.7 billion. The combined business will manage over $25.4 billion in assets. Under the terms of the transaction Quellos Group will receive $562 million in cash and $188 million in BlackRock common stock. In addition, Quellos Group may receive up to an additional $970 million in cash and stock over three and a half years contingent on certain measures. A substantial portion of after-tax cash proceeds will be reinvested for 10 years in products managed by the fund of funds investment professionals. BlackRock’s acquisition of Quellos’ fund of funds business is expected to close in October. BlackRock was advised by Citi and Skadden Arps. Quellos was advised by UBS and Paul, Weiss.