Alliance Capital Management has agreed to sell its AllianceBernstein cash management business to Federated Investors in a deal that is expected to close by the third quarter of 2005, the firms said. According to the deal, AllianceBernstein will transfer $29 billion in assets from its 22 money market funds into 21 of Federated’s money market funds.

Alliance CEO Lewis Sanders said the sale is the latest example of the firm’s refocus on growth equity, value equity and fixed income, as well as research. Federated will pay $25 million in cash up front and make yearly payments based on the amount of revenue its new venture generates.

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