State Street Corp. of Boston announced on Monday that it has completed its acquisition of another Boston company, Investors Financial Services Corp.
Investors Financial shareholders will receive 0.906 shares of State Street common stock for each of their shares. To complete the transaction, State Street issued about 61 million common shares worth $4.2 billion.
Joseph L. "Jay" Hooley, a vice chairman at State Street and its head of global investment servicing and investment research and trading, said the transition of customers to his company's platform should be completed within 18 months.
Investors Financial had $2.3 trillion of assets as of March 31, including about $1.8 trillion held in custody.
State Street expects the acquisition to be dilutive to operating earnings this year, neutral next year, and accretive by 2009, because it anticipates pretax savings of about $345 million to $365 million over the first two years of operation.
Pretax merger and integration costs, and associated restructuring costs, are expected to be $625 million to $675 million.
The deal was announced in February and received regulatory approval in June.
The deal gives State Street $12.3 trillion in assets under custody and makes the company the second-largest global custodian trailing only Bank of New York Mellon Corp.
