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Updated: November 26, 2019

Portland fintech to acquire U.S. Bancorp subsidiary

Foreside Financial Group LLC, a Portland-based provider of compliance technology and services for the asset management industry, plans to acquire the mutual fund and exchange-traded funds distribution business of U.S. Bancorp (NYSE: USB), the country's seventh-largest bank holding company. 

The purchase of Quasar Distributors is expected to close in the first quarter of 2020, according to a news release. Terms were not disclosed.

The acquisition will make Foreside one of the largest third-party fund distributors in the world, the release said, with the addition of over 200 Quasar clients, 26 employees and a new location in Milwaukee.

Besides its Portland headquarters, the company now operates seven regional offices in the East and Midwest.

“Foreside is excited for the potential this acquisition provides to broaden our wide range of compliance and regulatory service offerings to clients based all over the U.S.,” Dave Whitaker, president of Foreside, said in the release. 

Courtesy / Foreside Financial Group
Dave Whitaker, president of Foreside Financial Group

The transaction will introduce Foreside’s customizable compliance solutions and outsourcing support to Quasar clients, while expanding Foreside’s broker-dealer capabilities, including dealer clearing services.

Quasar’s clients range from small to large asset management firms, focused on mutual funds and exchange-traded funds. 

“We have historically had a strong working relationship with Foreside and expect that relationship to continue into the future given the complementary nature of our businesses,” Joe Neuberger, head of U.S. Bank Global Fund Services, said in the release.

With over $1 trillion in assets under distribution, Foreside continues to grow its market share rapidly.

This is Foreside’s third acquisition in 2019. The company purchased Compliance Advisory Services, a compliance consultant in Texas, in October.

Foreside acquired NCS Regulatory Compliance, a provider of outsourced compliance and regulatory services, in January.

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