Lehman Brothers is indeed getting into the asset management business. The Wall Street firm said this morning that it will pay $2.625 billion to purchase Neuberger Berman. The two firms had been in talks since mid-June.

"Strategically, this acquisition meets our objectives of enhancing business diversification and growing our higher margin businesses," said Richard Fuld, chairman and chief executive officer of Lehman Brothers in a statement.

As of this morning, Neuberger Berman said it managed $63.7 billion of assets. That figure includes $20.2 billion of mutual fund and sub-advised business, $12.3 billion in its institutional separate account, $7.2 billion in its wrap account business and $23.9 billion in its private asset management business.

The price paid by Lehman is roughly 4.12 percent of assets under management at Neuberger. It also about 12 percent below the $3 billion price tag first speculated upon when word of the potential deal started circulating. It also may be adjusted downwards if the asset-based fees collected by Neuberger Berman drop by more than 15 percent from recent levels. Terms of the deal also call for a breakup fee of $95 million if the deal is not completed.

Neuberger will become part of Lehman's Client Services Segment's Wealth & Asset Management Division. Jeffrey B. Lane, currently Neuberger's chief executive, will become a vice chairman of Lehman Brothers and a member of the office of the chairman.  

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