BOSTON -- State Street Boston Corp. announced it has a letter of intent to acquire Investors Fiduciary Trust Co., a Kansas City, Mo., a provider ofcustodial and accounting services to mutual funds and other investment entities, for stock valued at $225 million.
Investors Fiduciary is jointly owned by Kemper Financial Services and DST Systems. DST is a subsidiary of Kansas City Southern Industries Inc.
The parties agreed to proceed with due diligence, which should lead to the negotiation of a definitive acquisition agreement. The deal would then be subject to regulatory approvals and other usual conditions.
As of June 30, IFTC had about $130 billion of assets under custody. With its parents on a consolidated basis, it has total assets of $787 million and stockholders' equity of $101 million. State Street has $1.6 trillion of assets under custody, including $669 billion of mutual fund assets.
