State Street to Buy Charles River Systems for $2.6 Billion in Cash
July 20 2018 - 6:55AM
Dow Jones News
By Colin Kellaher
State Street Corp. (STT) on Friday said it reached a definitive
agreement to buy Charles River Systems Inc., a premier provider of
investment-management front-office tools and solutions, for $2.6
billion in cash.
The Boston provider of financial services said it will finance
the purchase price in part through the suspension of about $950
million of share repurchases this year.
State Street said it plans to fund the rest of the deal through
the issuance of equity, with about two-thirds in common stock and
one-third in preferred stock.
State Street, which on Thursday announced a 12% increase to its
quarterly common stock dividend, said the acquisition was included
in its capital plan as a potential strategic change, and that the
Federal Reserve granted a conditional non objection.
Charles River, based in Burlington, Mass., has offices in North
America, Europe and the Asia-Pacific region and posted 2017 total
revenue of more than $300 million, State Street said. The company
said it expects the acquisition will add to earnings in 2020,
excluding acquisition and restructuring costs.
When integrated with State Street's existing capabilities,
Charles River's systems "will enable State Street to deliver a
global front-to-back platform for asset managers and asset owners
that will be unique in the investment servicing industry," State
Street said.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
July 20, 2018 06:40 ET (10:40 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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