State Street has agreed to buy General Electric's asset management unit for as much as $485 million.
The all-cash deal is subject to adjustments and requires regulatory approval, State Street said in a news release Wednesday. It is expected to close in the third quarter.
State Street, of Boston, estimates that the acquisition would be accretive to operating earnings for the first 12-month period after it closes. It is expected to generate between $270 million and $300 million of additional fee revenue for State Street in its first year, while running up merger costs of between $70 million and $80 million through 2018.
- Massachusetts
State Street in Boston is on the hunt for a new chief financial officer. Michael Bell, 52, has decided to step down within the next year the custody bank said on Thursday.
March 10 -
Western Alliance Bancorp. in Phoenix has agreed to buy GE Capital's hotel franchise finance loan portfolio.
March 29 -
A well-known Wall Street firm is urging Citigroup to split itself in two for the benefit of investors, adding to the chorus of calls for the biggest banks to be broken up. How much of a difference will it make?
March 21
GE Asset Management, in Stamford, Conn., has about $110 billion in assets under management. Its clients include institutional investors such as private and public pension funds, foundations, endowments, sovereign wealth funds and insurance companies.
