San Diego-based Nicholas-Applegate Capital Management will be acquired by a German insurance company under terms of an agreement announced Oct. 18.
Allianz AG will purchase the mutual fund company for an initial payment of $980 million with an additional payment of up to $1.09 billion, depending on the profitability growth of Nicholas-Applegate and performance of the investments it manages for others during the next five years, said Rick Shaughnessy, a vice president at the local company.
Nicholas-Applegate currently manages about $45 billion in stocks and bonds for institutional investors, Shaughnessy said.
Art Nicholas and Fred Applegate, who is now retired from active management of the company, started it in 1984.
The local company now has 34 partners and a total of 420 people working at a Downtown office and at branch offices in New York, Chicago, San Francisco, Amsterdam in the Netherlands, and Melbourne, Australia. No layoffs are anticipated from the acquisition, which is expected to close in the first quarter of next year, Shaughnessy said.
“This establishes Nicholas-Applegate with a real leader in global investment management, which will ensure the resources that we need to retain our information edge and to continue our record of innovation,” Shaughnessy said.
Nicholas-Applegate is best known in the United States for its management of domestic and foreign growth stock portfolios, he said.
Allianz, a $662 billion financial services firm, bought a 70 percent stake in a U.S. fixed-income management fund, Pimco Advisors Holdings, in May of this year for $3.3 billion. It also owns Oppenheimer Capital, another mutual fund manager, he added.
