Allianz Group of Munich, Germany will acquire Nicholas-Applegate of San Diego for $2.07 billion, $980 million of it up front and another $1.09 billion contingent upon Nicholas-Applegate achieving a 25 percent annual growth rate over the next five years, Allianz has announced.
Allianz expects to close on the deal in the first quarter of next year, which will bring Allianz' global assets under management to $662 billion, the company announced. Nicholas-Applegate had $45 billion in assets under management as of Sept. 30 and focuses on the institutional market, Allianz said.
Allianz wants to expand its U.S., global and emerging-markets growth equity portfolios, for which Nicholas-Applegate is known, the company said. Allianz has strong coverage of the fixed income sector through its subsidiary PIMCO of Newport Beach, Calif. and general equity investments through Oppenheimer Capital of New York and Cadence Capital of Boston, Allianz said.