Tuesday, 14 September 2021

State Street to acquire Brown Brothers Harriman Investor Services


'It might have happened by now. This email is a week old.’

Yeah, yeah.

London, September 7, 2021 - State Street Corporation and Brown Brothers Harriman & Co. today announced that they 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 $3.5 billion 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.


BBH Investor Services is a global asset servicer 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.3

Fine. 'Is there a bit missing at the end of that paragraph, boss?' I don't know, Voice. Leave me alone.

The acquisition is expected to advance State Street's 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.

Right. Understood.


"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," says Ron O'Hanley, Chairman and Chief Executive Officer of State Street Corporation. "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."

Thanks, Ron.

Reg? 'Billy, boss.' Billy Boss?! Ha! Whatever.

"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," says Bill Tyree, managing partner of BBH. "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."

Thanks, son.

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.

Nice one.

"We found in State Street a partner who shares our singular focus on delivering exceptional client outcomes, without exception," says Páircéir, head of BBH Investor Services. "We are committed to adopting best practices from both organizations to create an unmatched offering for the world's most sophisticated asset managers and financial institutions."

All right, Sean. You've made your point.

Goldman Sachs & Co. LLC served as financial advisor and Davis Polk & Wardwell LLP served as legal advisor to State Street in connection with the transaction. Lazard served as financial advisor and Sullivan & Cromwell LLP served as legal advisor to BBH in connection with the transaction.

Okay. Fine.


This News Release (and the conference call referenced herein) contains forward-looking statements within the meaning of United States securities laws, including statements about State Street's planned acquisition of BBH's Investor Services business and related business, financial, capital, staffing and operational effects and considerations.

Forward-looking statements are often, but not always, identified by such forward-looking terminology as "will," "expect," "target," "cake," "estimate," "potential," "plan," "can," "outlook," "guidance," "balloon," "priority," "objective," "intend," "forecast," "parrot," "believe," "anticipate," "seek," "may," "trend," "strategy" and "goal," or similar statements or variations of such terms. These statements are not guarantees of future performance, are inherently uncertain, are based on current assumptions that are difficult to predict and involve a number of risks and uncertainties. Therefore, actual outcomes and results may differ materially from what is expressed in those statements, and those statements should not be relied upon as representing our expectations or beliefs as of any time subsequent to the time this News Release is first issued.

Yeah, yeah. My readers understand, I'm sure. Christ.

And what conference call? 'There's going to be a conference call, boss. Or there was. I don't know. You cut that bit out anyway.'

That's enough.