Scout Investment Advisors, a subsidiary of UMB Financial, has signed a definitive agreement for the acquisition of substantially all of the assets of Reams Asset Management, an investment management firm based in Columbus, Indiana.

The transaction is expected to close in the fourth quarter of 2010 and is expected to more than double Scout's existing assets under management.

Reams manages more than USD9.8bn in fixed income assets and serves a diverse group of institutional clients, including Fortune 500 corporations, large public pension funds, Taft-Hartley plans, healthcare organisations and a variety of universities, foundations and endowments.

"Fixed income represents a key strategic growth area in the institutional asset management business," says Peter deSilva, president and chief operating officer, UMB Financial. "The addition of Reams Asset Management and their expertise in the fixed-income sector complements Scout's existing product offerings and allows us to offer clients a diversified array of top-tier investment options."

Following the close of the acquisition, Reams will operate as a division of Scout Investment Advisors and remain headquartered in Columbus. The firm's leadership team will continue to manage the business in their current roles and lead the business strategy for Scout in the fixed income sector. The investment process and philosophy guiding the existing strategies will also remain unchanged.

"We are excited to join the UMB family as a part of Scout Investment Advisors," says Dave McKinney, president of Reams Asset Management. "Over the years, Reams has built a reputation for expertise in fixed-income investments and this partnership will bring additional breadth and scale to our organisation. Given recent global economic conditions, institutional clients are seeking service providers that have a strong parent company like UMB Financial. Additionally, with Scout's expertise in domestic and international equities, the combined strengths of our firms will allow us to deliver a comprehensive investment lineup to the institutional marketplace."

Berkshire Capital served as exclusive financial adviser to UMB on this transaction.