Amvescap announced it has signed a definitive agreement to acquire Wilbur Ross' private equity firm WL Ross for an initial $100 million at closing and up to $55 million a year over the course of five years if certain financial targets are met, putting the potential total value of the deal at $375 million. The deal is expected to close in the fourth quarter.

As a result, Amvescap will merge its private equity subsidiary, Invesco Private Capital, together with WL Ross, putting Ross in charge.

"The addition of WL Ross significantly expands the range of sophisticated investments for Amvescap's global clients," said Martin L. Flanagan, president and CEO of Amvescap. "Wilbur Ross is the recognized leader in financial restructuring, and we are very excited that such a distinguished investor and his experienced team are joining Amvescap."

Ross said he is teaming up with Amvescap to reach new industries, expand his international reach and work with a deeper base of capital. Amvescap has $400 billion under management, compared to WL Ross's $3.5 billion.

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