State Street Announced to Acquire Brown Brothers Harriman Investor Services

​State Street Corporation (State Street), one of the world’s largest servicers and managers of institutional assets, announced yesterday that it has entered into a definitive agreement with Brown Brothers Harriman & Co. (BBH) to acquire the company’s Investor Services businesses, including its custody, accounting, fund administration, global markets and technology services, for $3.5 billion in cash.

Through the acquisition, State Street hopes to enhance its strategy as an enterprise outsource solutions provider by creating the number one asset servicer globally, strengthening competitive positioning, expanding geographic coverage and enhancing client experience.

BBH Investor Services is a global asset service provider with a track record of exceptional client service and deep expertise in cross-border, alternatives, ETFs, and other high-growth asset classes. As of June 30, 2021, BBH Investor Services had $5.4 trillion in Assets Under Custody (AUC), adding to State Street’s $31.9 trillion in AUC.

BBH will continue to independently own and operate its separate Private Banking and Investment Management businesses after the deal, which is expected to close at the year end of 2021, subject to regulatory approvals and customary closing conditions, according to the official press release.

Besides, 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.