State Street buys Charles River Development for $US2.6bn

state street corporation funds management

23 July 2018
| By Nicholas Grove |
image
image
expand image

State Street Corporation announced that it has agreed to acquire Massachusetts-based Charles River Systems, a provider of investment management front office tools and solutions, in an all-cash transaction for $US2.6 billion.

The acquisition, which is subject to regulatory approvals and customary closing conditions, is expected to be completed in the fourth quarter of 2018, the investment manager said.

State Street said that Charles River Development’s front-office systems would enable it to deliver a global front-to-back platform for asset managers and asset owners that would be unique in the investment servicing industry.

This interoperable platform, supported by deep enterprise data management capabilities, would enable investment workflows, provide advanced data aggregation, analytics and compliance tools, and connect and exchange data with other industry platforms and providers, it said.

“This acquisition will also enable us to address a large adjacent $US8 billion revenue pool for front office services,” said Jay Hooley, chairman and CEO of State Street.

“Clients today want solutions that can add value and achieve efficiencies from portfolio modelling and construction all the way through to custody as they face increasing complexity and regulatory expectations, and the need to manage costs and achieve product or geographic expansion.”

Ron O’Hanley, president and chief operating officer of State Street, said the acquisition recognised that the ability to assist clients in managing their data needs and to extract insights from their data is increasingly the most important differentiator for the industry.

“Our interoperable platform will enable clients to integrate and align their preferred systems utilizing State Street provided data, and access liquidity, insights, data and technology infrastructure,” he said.

“We are confident that this acquisition will enable us to deepen and grow our client base and deliver positive results for our shareholders.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

3 weeks 5 days ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month ago

Insignia Financial has confirmed it is considering a preliminary non-binding proposal received from a US private equity giant to acquire the firm. ...

1 week 3 days ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

6 days 7 hours ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

5 days 11 hours ago