PNC Financial Services Group has signed a definitive agreement to sell Global Investment Servicing to The Bank of New York Mellon for $2.3bn in cash.

Global Investment Servicing is a provider of processing, technology and business intelligence services to asset managers, broker-dealers and financial advisors.

Upon completion of the sale, PNC expects to report an after-tax gain of approximately $0.5bn and an increase in Tier 1 common capital of approximately $1.6bn after the release of capital of $1.1bn primarily related to goodwill and other intangible assets.

James Rohr, chairman and CEO of The PNC Financial Services, said: “The sale of PNC Global Investment Servicing is consistent with our focus on disciplined capital management. Given the changing competitive landscape in the investment servicing industry, we believe this is the proper time to sell the business to capture the full value of PNC Global Investment Servicing.

“The capital generated from this transaction will position PNC with further flexibility. We are pleased that this transaction partners PNC Global Investment Servicing’s clients and employees with an industry leader.”

However, the transaction is estimated to be completed in the third quarter of 2010, subject to regulatory approvals and certain other closing conditions.