American Century Investments announced plans Wednesday to acquire Kopp Investment Advisors' two mutual funds, which have a value of $300 million to $350 million. Terms of the deal were not disclosed. Kopp said it agreed to the sale so that it can focus on its core competency, private account management.
American Century will merge the two Kopp funds, the Kopp Emerging Growth Fund and the Kopp Total Quality Management Fund, into two of its existing funds. The companies plan to complete the acquisition in February.
"We've very pleased to be announcing this transaction with Kopp," said David Tucker, senior vice president of business development at American Century. "The additional assets will allow us to reach a fee breakpoint on one of our key strategies, New Opportunities II, which will directly translate to lower fees for its shareholders."
The small-cap growth American Century New Opportunities II Fund will acquire the assets of the Kopp Emerging Growth Fund, which has a similar mandate, and the American Century Equity Growth Fund, a large-cap growth fund, will absorb the assets of the like-minded Kopp Total Quality Management Fund.