Bank of America is to sell the long-term asset management business of Columbia Management to Ameriprise Financial for around $1 billion.

Columbia’s long-term asset management business has approximately $165 billion in equity and fixed-income assets under management, as at the end of June. The total consideration to be paid for the business is expected to be between $900 million and $1.2 billion, based on net asset flows and investor consents in the period leading up to closing, BoA said in a statement.

The deal is due to close in the spring of next year, subject to regulatory approvals and other closing conditions.

BoA also said it is considering alternatives for Columbia’s cash investments, or short-term asset management business.

BoA, which received some $45 billion in government rescue funds, completed its acquisition of Merrill Lynch at the start of this year. Since then the bank has been evaluating its entire portfolio of businesses with a view to selling off non-core assets to raise capital.

In June unconfirmed reports emerged that BoA was in talks with potential buyers for First Republic Bank, the San Francisco-based bank that caters to wealthy individuals.