Financial services company City National ( CYN) said it agreed to acquire Independence Investment LLC from Manulife Financial ( MFC).

Terms of the deal were not disclosed.

City National expects the all-cash transaction to close late in the second quarter and hopes it to modestly add to its 2006 earnings. The acquisition will bring City National's assets under management to nearly $27 billion.

Non-interest income, which currently is about 25% of City National's total revenue, is expected to rise to about 28% once the acquisition is complete, it said.

"In addition to further diversifying our revenue and increasing non-interest income, this new alliance will broaden the selection of equity investment strategies we can offer clients, strengthen our growing network of asset management affiliates and facilitate the continued success of Independence," City National said.

City National's shares were trading at $76, down 13 cents.

This story was created through a joint venture between TheStreet.com and IRIS.

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