Federated Investors, an investment management firm, has entered into a definitive agreement with SunTrust Banks, to acquire approximately $17bn in money market assets.

The assets to be acquired by the Federated are currently managed by SunTrust’s RidgeWorth Capital Management and its subsidiary StableRiver Capital Management. However, SunTrust will retain RidgeWorth’s long-term asset management business.

Under the agreement, money market assets currently managed in nine RidgeWorth money market mutual funds will be transitioned into six existing Federated money market mutual funds with similar investment objectives. Certain assets maintained by SunTrust Bank in collective and common funds also will be transitioned to Federated money market mutual funds.

Christopher Donahue, president and CEO of Federated, said: “The transition builds on Federated’s long-term relationship with SunTrust by providing current SunTrust clients access to Federated’s impressive breadth of products, experienced money managers, proven credit process and extensive customer-service capabilities.”

William Rogers, president of SunTrust Banks, said: “Federated shares SunTrust’s focus on providing outstanding client service, and we are dedicated to ensuring a smooth transition for our managed liquidity clients. Furthermore, we believe RidgeWorth’s long-term asset management business offers attractive growth opportunities for us, and we look forward to driving its continued success.”

However, the transaction is subject to approval and is expected to occur through a series of closings by year-end.