State Street Corporation has announced it is acquiring Brown Brothers Harriman and Co (BBH) Investor Services business for US$3.5 billion ($4.7 billion).
State Street said it expected the acquisition to advance its strategy as an enterprise outsource solutions provider.
The firm’s chair and chief executive, Ron O’Hanley, said: “The investment servicing industry enjoys strong fundamentals as worldwide growth in financial assets drives industry revenues. This combination with BBH Investor Services helps us consolidate our position as the industry innovator and leader”.
Global asset servicer BBH Investor Services had US$5.4 trillion in assets under custody and had expertise in cross-border alternatives, exchange traded funds, and other high-growth asset classes.
The parties were targeting year-end 2021 to complete the acquisition, subject to regulatory approvals and customary closing conditions.