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.

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