Investment bank Morgan Stanley and investment management firm Eaton Vance have entered into a definitive agreement which the former will acquire the latter for $7 billion.
Morgan Stanley Asset Management (MISM) would now have approximately $1.2 trillion of assets under management (AUM) and over $5 billion of combined revenues.
This acquisition would include customised accounts firm Parametric and environmental, social and governance (ESG) investment firm Calvert.
The acquisition is subject to customary closing conditions, and is expected to close in the second quarter of 2021.
James P. Gorman, chair and chief executive officer of Morgan Stanley, said Eaton Vance was a “perfect fit” for Morgan Stanley.
“This transaction further advances our strategic transformation by continuing to add more fee-based revenues to complement our world class investment banking and institutional securities franchise,” Gorman said.
“With the addition of Eaton Vance, Morgan Stanley will oversee $4.4 trillion of client assets and AUM across its Wealth Management and Investment Management segments.”
Thomas E. Faust Jr, Eaton Vance chief executive, said by joining Morgan Stanley, they would be able to further accelerate growth by building upon our common values and strengths.
“Bringing Eaton Vance’s leading brands and capabilities under Morgan Stanley creates a uniquely powerful set of investment solutions to serve both institutional and retail clients in the U.S. and internationally,” Faust said.