State Street has agreed to acquire GE Asset Management (GEAM), the investment management unit of GE, in a cash deal valued up to $485m.
The business includes GE’s U.S. benefits plans and assets for third-party institutional clients, and its acquisition is projected to boost State Street Global Advisors’ (SSGA) assets under management by nearly $100bn.
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Under the deal, the existing GEAM team will join SSGA, excluding a few employees who will remain at GE to manage GE’s primary benefit plans.
The transaction forms part of GE’s strategy to retreat from finance and focus on its industrial core.
It is scheduled to close in the third quarter of 2016, subject to regulatory approval.
SSGA president and CEO Ron O’Hanley said: "As defined benefit plans – both private and public – undergo change, GEAM’s skills coupled with SSGA’s existing capabilities will position us well to provide effective solutions and outcomes to these investors.
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By GlobalData"GEAM will bring new alternatives capabilities in direct private equity and real estate to SSGA while enhancing our existing active fundamental equity, active fixed income and hedge fund teams. In addition, GEAM’s OCIO and Insurance platforms significantly strengthen our capabilities in these fast growing areas."
