American asset manager State Street has agreed to acquire Charles River Development, a provider of investment management solutions, in a cash deal valued at $2.6bn.
Massachusetts-based Charles River specialises in solutions that automate front and middle office investment management capabilities. The company has over 300 clients and employs 750 staff in 11 regional offices.
Go deeper with GlobalData
The deal will result in the creation of an end-to-end interoperable platform through integration of Charles River’s front and middle office software as a service (SaaS) capabilities and State Street’s front, middle and back office functions.
State Street president and COO Ron O’Hanley said: “Our interoperable platform will enable clients to integrate and align their preferred systems utilising State Street provided data, and access liquidity, insights, data and technology infrastructure.
“We are confident that this acquisition will enable us to deepen and grow our client base and deliver positive results for our shareholders.”
The deal is slated to close in the fourth quarter of this year, subject to regulatory nod. State Street expects the transaction to be accretive to its earnings in 2020, as well as offer long-term revenue growth.
State Street chairman and CEO Jay Hooley said: “Today’s announcement represents an important milestone in our digital and technology transformation aimed at providing clients with differentiated solutions and data. This acquisition will also enable us to address a large adjacent $8bn revenue pool for front office services.”
