State Street to acquire BBH

State Street is to acquire Brown Brothers Harriman Investor Services.

Following the transaction, State Street will take over BBH’s Investor Services business, including its securities lending, custody, accounting, fund administration, global markets and technology services, for US $3.5 billion.

BBH will continue to independently own and operate its separate private banking and investment management businesses.

The acquisition is expected to be complete by the end of 2021.

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.

Ron O'Hanley, chairman and CEO of State Street, says: “The investment servicing industry enjoys strong fundamentals as worldwide growth in financial assets drives industry revenues. This combination with BBH Investor Services helps us consolidate our position as the industry innovator and leader."

He adds: “We are enhancing our leadership position across a range of services, augmenting our position in a number of key markets, growing relationships with many of the leading global asset managers and owners, and increasing our capabilities and scale. Additionally, BBH Investor Services brings us strong talent, including industry leading service excellence and quality execution.”

Bill Tyree, managing partner of BBH adds: “We made this decision after careful consideration of the current and future landscape of the global securities servicing industry, including how best to support and innovate for the growing breadth and complexity of our clients’ servicing requirements. State Street is the ideal partner – a firm that shares our core values of unmatched client service, integrity, trust, and a long-term commitment to sustainability.”