The bidding is over for the scandal-tarnished Strong Capital Management. Wells Fargo reached a definitive agreement last week to purchase Strong's $27 billion in mutual fund assets and $7 billion in institutional investment assets. Although terms of the deal were not disclosed, Wells reportedly will pay less than $500 million in a first payment and then up to $200 million in subsequent installments, depending on which direction Strong's assets under management go.
Since the scandal began, Strong has lost $8 billion in assets and is down to $34 billion. The founder of Strong, Richard Strong, could have sold the firm for $1 billion in 1997, but balked.