State Street Global Advisors to Acquire Bank of Ireland Asset Management
October 22 2010 - 4:00AM
Business Wire
State Street Global Advisors (SSgA), the investment management
business of State Street Corporation (NYSE: STT), announced today
that it has agreed to acquire Bank of Ireland Asset Management
(BIAM) for consideration of approximately €57 million inclusive of
estimated net assets of the business of €14 million.
Pending regulatory approvals and other closing conditions, the
transaction is expected to close in the first quarter of 2011 or
earlier. State Street expects the transaction to be slightly
accretive to 2011 earnings, excluding one-time costs. Upon closing
of the transaction, the BIAM operation in Dublin will transition to
State Street Global Advisors Ireland Limited.
With approximately €26 billion in assets under management among
more than 500 clients as of September 30, 2010, BIAM is a
recognized leader in the Irish market offering a broad range of
investment solutions to institutional investors and intermediaries
including global fundamental equities, fixed income, cash, asset
allocation, property and balanced funds. Upon closing of the
transaction, more than 120 employees of BIAM are expected to join
SSgA in Dublin.
“This acquisition enables SSgA to expand its range of investment
capabilities to include active fundamental management,” said Scott
Powers, president and chief executive officer of State Street
Global Advisors. “As our clients look for more solutions-driven
investment management strategies that span the risk spectrum, the
addition of this team and capabilities will enhance our ability to
deliver on these needs. Like SSgA, Bank of Ireland Asset
Management’s investment philosophy is rooted in a disciplined,
team-based approach and has a strong track record of excellent
performance. We look forward to building on this track record and
extending its capabilities to our global client base.”
With this acquisition, SSgA will add Dublin as its 10th global
investment center from which investment teams manage client assets.
SSgA offers a broad range of investment solutions covering every
major asset class, capitalization range, region and style.
Chris Johns, currently the interim chief executive officer and
chief investment officer of BIAM will be named SSgA chief
investment officer for fundamental active equity and will report to
Rick Lacaille, SSgA’s global chief investment officer.
State Street has had a presence in Ireland since 1996 and has
grown to be one of the country’s largest fund administrators and
custodians. State Street currently has approximately 2,000
employees in Ireland and has offices in Dublin, Drogheda, Kilkenny
and Naas. Earlier this year, State Street announced the opening of
its new 165,000 square foot Irish headquarters at Sir John
Rogerson’s Quay in Dublin.
About State Street Global Advisors
State Street Global Advisors (SSgA) is a global leader in asset
management that sophisticated investors worldwide rely on for a
disciplined investment process, powerful global investment platform
and access to every major asset class, capitalization range and
style. SSgA is the asset management business of State Street, one
of the world’s leading providers of financial services to
institutional investors.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's
leading providers of financial services to institutional investors
including investment servicing, investment management and
investment research and trading. With $20.2 trillion in assets
under custody and administration and $1.9 trillion in assets under
management at September 30, 2010, State Street operates in 25
countries and more than 100 geographic markets worldwide. For more
information, visit State Street’s web site at
www.statestreet.com.
Forward-Looking Statements
This news release contains forward-looking statements as defined
by United States securities laws, including statements agreement to
acquire BIAM, the results and impact of that acquisition and
related rationales, as well as about our goals and expectations
regarding our business, financial condition, results of operations
and strategies, the financial and market outlook, governmental and
regulatory initiatives and developments, and the business
environment. Forward-looking statements are often, but not always,
identified by such forward-looking terminology as “plan,” “expect,”
“look,” “believe,” “anticipate,” “estimate,” “seek,” “may,” “will,”
“trend,” “target” and “goal,” or similar statements or variations
of such terms. These statements are not guarantees of future
performance, are inherently uncertain, are based on current
assumptions that are difficult to predict and involve a number of
risks and uncertainties. Therefore, actual outcomes and results may
differ materially from what is expressed in those statements, and
those statements should not be relied upon as representing our
expectations or beliefs as of any date subsequent to the date of
this news release.
Important factors that may affect future results and outcomes
include, but are not limited to:
- the ability to obtain regulatory
approvals for the transaction and the satisfaction of other closing
conditions;
- the risks that businesses will not be
integrated successfully, or will take longer than anticipated, that
expected synergies will not be achieved or unexpected dissynergies
will be experienced, that customer retention goals will not be met
and that disruptions from the transaction will harm relationships
with customers, employees and regulators;
- changes in law or regulation that may
adversely affect our clients’ or our counterparties’ business
activities and the products or services that we sell, including
additional or increased taxes or assessments, capital adequacy
requirements and changes that expose us to risks related to
compliance;
- financial market disruptions and the
economic recession, whether in the U.S. or internationally, and
monetary and other governmental actions, including regulation,
taxes and fees, designed to address or otherwise be responsive to
such disruptions and recession, including actions taken in the U.S.
and internationally to address the financial and economic
disruptions that began in 2007;
- increases in the volatility of, or
declines in the levels of, our net interest revenue, changes in the
composition of the assets on our consolidated balance sheet and the
possibility that we may be required to change the manner in which
we fund those assets;
- the financial strength and continuing
viability of the counterparties with which we or our clients do
business and to which we have investment, credit or financial
exposure;
- the liquidity of the U.S. and
international securities markets, particularly the markets for
fixed-income securities, and the liquidity requirements of our
clients;
- the credit quality, credit agency
ratings, and fair values of the securities in our investment
securities portfolio, a deterioration or downgrade of which could
lead to other-than-temporary impairment of the respective
securities and the recognition of an impairment loss in our
consolidated statement of income;
- the maintenance of credit agency
ratings for our debt and depository obligations as well as the
level of credibility of credit agency ratings;
- the performance and demand for the
products and services we offer, including the level and timing of
redemptions and withdrawals from our collateral pools and other
collective investment products;
- the risks that acquired businesses will
not be integrated successfully, or that the integration will take
longer than anticipated, that expected synergies will not be
achieved or unexpected disynergies will be experienced, that client
and deposit retention goals will not be met, that other regulatory
or operational challenges will be experienced or that disruptions
from the transaction will harm relationships with clients,
employees or regulators;
- the possibility of our clients
incurring substantial losses in investment pools where we act as
agent, and the possibility of further general reductions in the
valuation of assets;
- our ability to attract deposits and
other low-cost, short-term funding;
- potential changes to the competitive
environment, including changes due to the effects of consolidation
and perceptions of State Street as a suitable service provider or
counterparty;
- the level and volatility of interest
rates and the performance and volatility of securities, credit,
currency and other markets in the U.S. and internationally;
- our ability to measure the fair value
of the investment securities on our consolidated balance
sheet;
- the results of litigation, government
investigations and similar disputes or proceedings;
- adverse publicity or other reputational
harm;
- our ability to grow revenue, attract,
retain and compensate highly skilled people, control expenses and
attract the capital necessary to achieve our business goals and
comply with regulatory requirements;
- our ability to control operating risks,
information technology systems risks and outsourcing risks, and our
ability to protect our intellectual property rights, the
possibility of errors in the quantitative models we use to manage
our business and the possibility that our controls will fail or be
circumvented;
- the potential for new products and
services to impose additional costs on us and expose us to
increased operational risk;
- changes in accounting standards and
practices; and
- changes in the interpretation of
existing tax laws by U.S. and non-U.S. tax authorities that impact
the amount of taxes due.
Other important factors that could cause actual results to
differ materially from those indicated by any forward-looking
statements are set forth in our 2009 Annual Report on Form 10-K,
and our subsequent SEC filings. We encourage investors to read
these filings, particularly the sections on Risk Factors, for
additional information with respect to any forward-looking
statements and prior to making any investment decision. The
forward-looking statements contained in this news release speak
only as of the date hereof, October 22, 2010, and we do not
undertake efforts to revise those forward-looking statements to
reflect events after this date.
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