City National Corp. said Friday that it agreed to buy Manulife Financial Corp.'s Independence Investment unit to expand its institutional money management assets.
The acquisition of Independence Investment, which oversees $7.5 billion in U.S. equities for institutions such as endowments and pension funds, will add to 2006 earnings, Beverly Hills-based City National said. The bank expects the transaction to close in the second quarter.
Terms of the deal weren't disclosed.
The purchase will increase City National's assets under management 39% to $27 billion.
Independence Investment, based in Boston, was formed in 1982 and became part of Toronto-based Manulife in 2004 when the insurance company acquired its parent, John Hancock Financial Services Inc.
Shares of City National rose 19 cents to $76.32. They have gained 11% in the last year, compared with the 13% advance by the 15-member Standard & Poor's mid-cap regional bank index.