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September 7, 2021

State Street to pay $3.5bn BBH’s investor services business

By Verdict Staff

State Street has entered into a definitive agreement to buy investor services business of Brown Brothers Harriman & Co. (BBH) in a cash deal valued at $3.5bn.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
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  • Assess and showcase the growth potential for various Industries in the target economy
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by GlobalData
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Following the transaction, BBH will continue to independently own and operate its separate private banking and investment management businesses.

BBH’s investor services business encompasses custody, accounting, fund administration, global markets and technology services.

The unit specialises in cross-border, alternatives, and ETFs among other high-growth asset classes.

It had $5.4 trillion in assets under custody (AUC) as of 30 June 2021.

State Street expects the deal to strengthen its competitive positioning as an enterprise outsource solutions provider and expand its geographic coverage.

State Street chairman and CEO Ron O’Hanley said that the combination with BBH Investor Services helps the firm consolidate its position as the industry innovator and leader.

“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,” O’Hanley said.

The deal is expected to be concluded by year-end 2021.

BBH managing partner Bill Tyree said: “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.”

Upon the closing of the deal, BBH Investor Services employees will join State Street.

BBH global head of investor services and partner Seán Páircéi will become part of State Street’s management committee.

The rest of BBH investor services’ senior management team will transition to executive leadership roles at State Street.

This July, State Street entered into an agreement to acquire Mercatus, a data management provider for private market managers.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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