State Street has agreed to acquire GE Asset Management (GEAM) in a $485 million cash transaction.
The deal is intended to bring additional alternatives capabilities and outsourced chief investment officer (CIO) services to the State Street Global Advisors business, and to improve its equity and active fixed-income teams.
As of 31 December 2015, GE Asset Management had 28 trillion in assets under custody and administration, and $2 trillion in assets under management. On closing, the acquisition is expected to add about $100 billion in assets under management.
The cash transaction is expected to close in Q3 2016, and is subject to regulatory approvals and customary closing conditions.
The existing GEAM team is expected to transfer to SSGA.
Jay Hooley, chair and CEO of State Street Corporation, said: “This transaction reflects our view of GEAM as a very high quality organisation with strong cultural alignment with SSGA. It is also reflective of our desire to allocate capital to higher growth and return businesses.”
He added: “We believe this will help accelerate our strategic plan to extend our capabilities in key areas for our clients.”
Dmitri Stockton, chair, president and CEO of GEAM, said: “This transaction will allow our firm to bring its active and alternative asset management capabilities to an even broader investor base, and enhance SSGA’s ability to grow its presence in the pension plan outsourcing segment.”
