Pittsburgh-based Federated Investors has completed its acquisitionof Cambridge, Mass.-based MDT Advisers.

MDT, with $6.7 billion under management, brings with it eight mutual funds, which Federated will immediately make available to its intermediaries, as well as several separately managed accounts. Federated is among the largest investment managers in the country, controlling about $217.5 billion in investments and offering 140 mutual funds.

"The proven investment acumen of the MDT Advisers' team combined with Federated's broad distribution capabilities in the broker/dealer, wealth management and institutional markets, make this acquisition a solid business combination for both MDT and Federated," said Christopher Donahue, president and chief executive of Federated.

MDT will operate as a division of Federated MDTA LLC, and will maintain the same bottom-up, selection process and investment objectives as MDT's extant funds.

The terms of the deal give Federated 89% ownership in MDT, and an option to buy the remaining 11% by June 30, 2007.

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