State Street and Brown Brothers Harriman & Co. have entered into a definitive agreement for State Street to acquire BBH’s Investor Services business, including its custody, accounting, fund administration, global markets and technology services, for USD3.5bn in cash. Following the transaction, BBH will continue to independently own and operate its separate private banking and investment management businesses. The parties are targeting year-end 2021 to complete the acquisition, subject to regulatory approvals and customary closing conditions. As of June 30, 2021, BBH Investor Services had USD5.4trn AuC, adding to State Street’s USD31.9trn AUC.
Upon closing of the transaction, BBH Investor Services employees will move to State Street. The senior management team will transition to State Street in executive leadership roles, and Seán Páircéir, currently partner and global head of Investor Services at BBH, will join State Street’s management committee.