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NEW YORK CITY-Ameriprise Financial has closed on the $440-million purchase of locally based asset management firm JW Seligman in an all-cash deal through Ameriprise’s RiverSource Investments subsidiary. The transaction, which also entails RiverSource becoming the investment manager of Seligman LaSalle International Real Estate Fund, was first announced in July.

In a release, Ameriprise says the Seligman acquisition adds more than $16 billion in assets in open and closed-end funds, hedge funds and institutional accounts. As of Sept. 30, the combined firms held approximately $144 billion in assets under management.

The 144-year-old Seligman brand will continue to be used under the RiverSource umbrella and the firm’s investment management teams are staying on, according to the release. Seligman is recognized in particular for its technology investment team, which manages retail and alternative portfolios, including Seligman Communications and Information Fund, the release says.

In July, Seligman president Brian Zino said in a release that the transaction will result in his company being “well positioned to increase distribution, grow assets and expand our service offerings to clients and their advisors.” Jim Cracchiolo, chairman and CEO of Ameriprise, said in July that his firm anticipated “substantial benefits from Seligman’s experienced investment management team and broad retail, institutional and alternative asset distribution strengths.”

UBS Investment Bank acted as financial advisor and Ropes & Gray LLP acted as legal advisor for Ameriprise. Merrill Lynch acted as financial advisor and Cleary Gottlieb Steen & Hamilton LLP acted as legal advisor for Seligman.

The transaction, which was funded through cash on hand, is expected to be accretive to Ameriprise earnings and return on equity in 2009. In a release, Ameriprise says the deal is expected to have no impact on the company’s share repurchase program, and that a majority of the anticipated synergies between RiverSource and Seligman are expected to be realized through cost savings.

Earlier this week, Seligman LaSalle International Real Estate Fund declared a Q4 distribution of $0.4375 per share, equal to 1.75% of the fund’s $25.00 initial offering price. The distribution will be paid on Dec. 22 to stockholders of record on Dec. 15.

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