BNY Mellon has signed a definitive agreement to acquire PNC's Global Investment Servicing Inc. (GIS) business. The purchase price of USD2.31bn includes the purchase of USD1.57bn of stock and repayment of intercompany debt from PNC. BNY Mellon plans to raise approximately USD800m in equity as part of the transaction. The all-cash acquisition, which will be accretive in the first year, is expected to close in the third quarter of 2010, subject to necessary regulatory approvals.
The deal means that BNY Mellon will become the second largest US provider of fund accounting, administration and transfer agency (behind State Street), adding USD855bn in assets under administration, including USD460bn in assets under custody, and doubling the number of funds serviced for accounting and administration. BNY Mellon will also move to the third largest global provider of alternative funds administration and will double its European asset base.
Based in Wilmington, Del. GIS has approximately 4,500 employees. Stephen M. Wynne, current CEO of GIS, will remain in that role, reporting to Tim Keaney and Jim Palermo, co-heads of BNY Mellon's asset servicing business.
News links in this part of assetman.net which relate to BNY Mellon to Pay USD2.3bn to Acquire PNC's Investment Servicing Business are immediately below:
asset management BNY Mellon to Pay USD2.3bn to Acquire PNC's Investment Servicing Business - this article
asset management BNY Mellon to Pay USD2.3bn to Acquire PNC's Investment Servicing Business - more stories
If you have found useful, you are sure to enjoy our wide range of resources. We bring you: news and events; rankings and ratings; and service providers. For easy access to our home page, click through to:
assetman.net