State Street buys Charles River Development for $US2.6bn
State Street Corporation announced that it has agreed to acquire Massachusetts-based Charles River Systems, a provider of investment management front office tools and solutions, in an all-cash transaction for $US2.6 billion.
The acquisition, which is subject to regulatory approvals and customary closing conditions, is expected to be completed in the fourth quarter of 2018, the investment manager said.
State Street said that Charles River Development’s front-office systems would enable it to deliver a global front-to-back platform for asset managers and asset owners that would be unique in the investment servicing industry.
This interoperable platform, supported by deep enterprise data management capabilities, would enable investment workflows, provide advanced data aggregation, analytics and compliance tools, and connect and exchange data with other industry platforms and providers, it said.
“This acquisition will also enable us to address a large adjacent $US8 billion revenue pool for front office services,” said Jay Hooley, chairman and CEO of State Street.
“Clients today want solutions that can add value and achieve efficiencies from portfolio modelling and construction all the way through to custody as they face increasing complexity and regulatory expectations, and the need to manage costs and achieve product or geographic expansion.”
Ron O’Hanley, president and chief operating officer of State Street, said the acquisition recognised that the ability to assist clients in managing their data needs and to extract insights from their data is increasingly the most important differentiator for the industry.
“Our interoperable platform will enable clients to integrate and align their preferred systems utilizing State Street provided data, and access liquidity, insights, data and technology infrastructure,” he said.
“We are confident that this acquisition will enable us to deepen and grow our client base and deliver positive results for our shareholders.”
Recommended for you
Several wealth management companies have been shortlisted in the second annual Australian AI Awards program, which champions individuals and organisations pioneering Australian AI innovation.
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
