Morgan Stanley has completed the previously announced acquisition of US-based investment management firm Eaton Vance.

The $7bn deal closed nearly six months after Morgan Stanley signed a definitive agreement to acquire Eaton Vance, which had more than $500bn in assets under management (AUM).

As agreed, Eaton Vance common stockholders were offered 0.5833 Morgan Stanley common shares and $28.25 per share in cash, or the opportunity to receive the total consideration in cash or stock.

The Eaton Vance shareholders also received a special dividend of $4.25 per share.

Morgan Stanley chairman and CEO James P. Gorman said: “This acquisition further advances our strategic transformation by continuing to add more fee-based revenues to complement our world-class, integrated investment bank.

“With the addition of Eaton Vance, Morgan Stanley will oversee $5.4 trillion of client assets across its Wealth Management and Investment Management segments. The Morgan Stanley Investment Management and Eaton Vance businesses are delivering strong growth and their complementary investment and distribution capabilities will deliver significant incremental value to our investment management clients.”

Thomas E. Faust, Jr., who was the chairman and CEO of Eaton Vance, will assume new responsibilities and will become the chairman of Morgan Stanley Investment Management. He will also join the Morgan Stanley Management Committee.

Faust, Jr. said: “My Eaton Vance colleagues and I are pleased to join Morgan Stanley to begin the work of building the world’s premier asset management organisation.

“On a combined basis, Morgan Stanley Investment Management and Eaton Vance have unrivalled investment capabilities, distribution reach and client relationships around the globe.”

Headquartered in New York, Morgan Stanley provides investment banking, securities, wealth management and investment management services.

In January, the company reported a 51% jump in net income in Q4 2020.