Wells Fargo Asset Management (WFAM), the global asset management division of Wells Fargo & Company (WFC Quick QuoteWFC - Free Report) with $481 billion in assets under management (AUM) is set to acquire Analytic Investors, LLC, an investment firm with $15 billion in AUM. Both the firms have entered into a deal under which Analytic will become part of WFAM after the transaction is completed.

The deal is anticipated to close by Oct 1, 2016. Financial terms of the transaction were not disclosed. The Los Angeles-based firm was established in 1970 offering quantitatively-based equity investment solutions to institutional clients globally.

 “This transaction brings Analytic’s well-regarded and innovative quantitative investment team together with WFAM’s fundamentally research-based investment capabilities and deep institutional investor relationships,” said Kristi Mitchem, CEO of Wells Fargo Asset Management. She also added, “We are delighted to add Analytic’s expertise in factor-based, risk controlled solutions, providing more components to build comprehensive investment solutions for our clients.”

Currently, amid strict regulatory environment, banks are striving hard to explore opportunities with innovative ideas. Moreover, in this aggressive market, Wells Fargo takes a step ahead by providing clients with new investment ideas to rule in the market. Moreover, Analytic’s innovative investment solutions will enhance asset management business of the bank by aiding revenue growth.

Wells Fargo currently holds a Zacks Rank #5 (Strong Sell). Some better-ranked finance stocks include Enterprise Financial Services Corp. (EFSC Quick QuoteEFSC - Free Report) and Comerica Inc. (CMA Quick QuoteCMA - Free Report) , both sport a Zacks Rank #1 (Strong Buy), while Old Second Bancorp Inc. (OSBC Quick QuoteOSBC - Free Report) carries a Zacks Rank #2 (Buy).

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