As of June 30, 2009, Boston-based Columbia managed approximately $93 billion in equity assets and $72 billion in fixed income assets. The cash business managed by Columbia is not included in the transaction.

The combination will:

Create a preeminent asset management business with nearly $400 billion in global assets under management, and the eighth-largest manager of long-term mutual funds in the U.S.;

Include a five-year strategic distribution agreement that provides ongoing access to clients of Bank of America affiliated distributors, including U.S. Trust;

Add extensive talent and a broad lineup of strong-performing retail and institutional investment products to Ameriprise Financial;

Leverage the strength of the well-regarded Columbia Management and Columbia Wanger brands;

Provide opportunities for significant cost savings. The company expects to generate $130 to $150 million in annual net synergies, with approximately half of these savings expected to be realized in the first year and substantially all in the second year.

"This acquisition transforms our asset management business, a core component of our integrated business model, and will significantly accelerate our growth," said Jim Cracchiolo, chairman and chief executive officer of Ameriprise Financial. "The combined business, which will bring together an extraordinary depth of investment talent, will provide the scale and the investment performance record for us to serve a broad range of investors”retail, high net worth and institutional.

"In addition to being accretive to earnings in the first year, we expect this acquisition to deliver an attractive return to our investors," Mr. Cracchiolo continued. "Using prudent assumptions for market appreciation and other factors, we expect the transaction to generate returns that are substantially greater than our cost of capital.

"We were able to pursue this compelling opportunity in large part because of the strength of the company and our capital position, which we maintained through the very challenging market conditions of 2008 and early 2009, and which we supplemented in June.