State Street Corporation (State Street) is set to acquire Brown Brothers Harriman’s (BBH) investor services business for $3.5 billion in cash.
This includes its custody, accounting, fund administration, global markets and technology services. The parties are targeting year-end 2021 to complete the acquisition, subject to regulatory approvals and customary closing conditions.
BBH’s Investor Services has deep expertise in cross-border, alternatives, ETFs, and other high-growth asset classes. It is responsible for $5.4 trillion in assets under custody (AUC), adding to State Street’s $31.9 trillion in AUC.
The firm's investment business employees will move to State Street, and the senior management team will transition to State Street in executive leadership roles. Seán Páircéir, currently partner and global head of investor services at BBH, will join State Street’s Management Committee.
The acquisition is expected to advance State Street’s strategy as an enterprise outsource solutions provider by strengthening its competitive positioning, expanding its geographic coverage and enhancing its client experience.
Ron O'Hanley, chairman and chief executive officer of State Street Corporation said: “We are enhancing our leadership position across a range of services, augmenting our position in a number of key markets, growing relationships with many of the leading global asset managers and owners, and increasing our capabilities and scale. Additionally, BBH Investor Services brings us strong talent, including industry leading service excellence and quality execution.”
Bill Tyree, managing partner of BBH, added: “We made this decision after careful consideration of the current and future landscape of the global securities servicing industry, including how best to support and innovate for the growing breadth and complexity of our clients’ servicing requirements. State Street is the ideal partner – a firm that shares our core values of unmatched client service, integrity, trust, and a long-term commitment to sustainability.”
