BlackRock is set to repurchase Bank of America’s remaining ownership in the asset manager in a deal worth approximately $2.545 billion, or $187.65 per share.

Following the transaction the shares will be retired, with an immediately accretive impact on earnings per share, BlackRock said in a statement.

In connection with the transfer of ownership, BlackRock said it has been working with BoA Merrill Lynch to strengthen business-wide collaboration between the two firms and ensure an ongoing strategic partnership. In light of this, Tom Montag, president of Bank of America's global banking and markets group, will continue to serve on BlackRock’s board.

The investment manager said it intends to fund the purchase through available cash and a total of $2 billion of commercial paper, medium-term and long-term debt, at a price representing a 3.6 per cent discount on the average closing price for the immediately preceding 15-day trading period.

The transaction is expected to close on or around 1 June 2011, and is outside BlackRock’s existing 5.1 million common share repurchase authorisation.

In related news, the investment manager reported an $87.5 billion increase in assets under management for the quarter leading up to 31 March 2011, bringing AuM to $3.648 trillion. Meanwhile, net income fell by 14 per cent on a consecutive basis, to $568 million, which the firm attributed to the seasonal nature of performance fees.