Wells Fargo to Acquire EverKey - Analyst Blog


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Wells Fargo & Company ( WFC ) has agreed to purchase investment boutique firm EverKey Global Partners in an effort to broaden its investment capabilities and provide strategies to meet the needs of its clients. The two companies have signed a definitive agreement in this context.

The deal is expected to close by January 1, 2012. However, the terms of the deal were not disclosed.

Established in December 2007 by Jeff Everett, EverKey offers global equity strategies to institutional clients. Everett previously served as president and chief investment officer of Templeton Global Advisors Limited.

EverKey's investment team will remain the same and there will be no change to its structure, investment philosophy, or location. It will become a part of Wells Capital Management, the wholly owned institutional asset management subsidiary of Wells Fargo Bank, N.A., and part of Wells Fargo's Asset Management Group.

With more than $449 billion in assets under management as of September 30, 2011, Wells Fargo Asset Management Group comprises Wells Capital Management, Wells Fargo Funds Management, LLC and several other boutique investment managers.

The acquisition of EverKey serves a strategic fit for Wells Fargo for offering a greater range of investment strategies to its clients and deliver value to investors. It also reflects its focus on the multi-boutique business model.

Going forward, we believe Wells Fargo's solid business model, strong capital position and expanded business through the Wachovia acquisition and its integration, expense management and improved credit quality will support its profit figures. Yet, a sluggish economic recovery and its impact on revenue will limit its growth somewhat.

Wells Fargo currently retains a Zacks #3 Rank, which translates into a short-term 'Hold' rating. However, one of its close peers, U.S. Bancorp ( USB ) has a Zacks #2 Rank, which translates into a short-term 'Buy' rating.

US BANCORP ( USB ): Free Stock Analysis Report
WELLS FARGO-NEW ( WFC ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
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