American investment manager Invesco has closed the acquisition of OppenheimerFunds from Massachusetts Mutual Life Insurance.

The transaction was first announced in October last year.

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The deal makes MassMutual the largest shareholder in Invesco, with a holding of around 15.7% in the latter.

As per the agreed terms, MassMutual was issued around 81.9 million shares of Invesco common stock and nearly $4bn in perpetual, non-cumulative preferred shares.

The deal increases Invesco’s total assets under management to $1.2 trillion.

This ranks the firm as the sixth largest retail investment manager in the US and the thirteenth largest investment manager globally.

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Invesco expects the deal to be immediately accretive to its adjusted earnings per share.

As part of the deal, retired CEO of OppenheimerFunds William Glavin will join Invesco board as MassMutual designee.

Invesco president and CEO Martin Flanagan said: “Clients face increasingly complex issues and are looking to work with fewer providers that can offer a comprehensive array of products and services.

“As the asset management industry sees further consolidation, we believe that firms with a wide range of capabilities, optimal value-added services and meaningful scale will be best positioned to meet client needs and succeed over the long term.

“We will leverage the combined firm’s highly talented team of professionals, expanded set of capabilities and deep global presence to continue providing tailored solutions that help our clients around the world achieve their investment objectives.”