The integration of Columbia Management into Ameriprise Financial Inc. (AMP) will likely be completed by the end of 2011, Ameriprise chief executive Jim Cracchiolo on a conference call Wednesday.

Bank of America Corp. (BAC) agreed to sell the stock and bond mutual fund business of its Columbia Management unit to Ameriprise for as much as $1.2 billion. The transaction is expected to close in the spring.

Ameriprise also said that the acquisition of the Columbia business would be paid "100% in cash at closing." It said the deal was pre-funded through an equity offering in June, and no additional financing would be necessary. There will be a one-time non-recurring integration cost between $130-$160 million.

Even after the acquisition closes, Ameriprise will still have $1 billion in excess capital, said Cracchiolo. While the firm is focused on integrating Columbia now, over time, Cracchiolo said the firm will look at opportunities to redeploy capital.

Additionally, Cracchiolo said Ameriprise has a five-year contract with Bank of America to distribute Columbia funds.

-By Jessica Papini, Dow Jones Newswires; 212-416-2172; jessica.papini@dowjones.com