State Street, a provider of financial services to institutional investors, has completed its acquisition of Italy-based Intesa Sanpaolo’s Securities Services business (ISPSS) for EUR1.28bn in cash.
The acquisition is likely to enhance State Street’s position in Italy, and strengthen its presence in Luxembourg.
State Street has acquired Intesa Sanpaolo’s custody, fund administration, depository bank and correspondent bank (banca corrispondente) businesses with approximately EUR369bn assets under custody as of March 31, 2010.
State Street has also acquired approximately EUR9bn in cash deposits and will support the acquired ISPSS balance sheet with approximately EUR450m of additional capital subject to closing adjustment mechanism.
ISPSS adds approximately EUR369bn in assets under custody; 529 employees in Milan, Turin and Luxembourg. The acquisition also includes a long-term investment servicing agreement with Intesa Sanpaolo to service its investment management affiliates including Eurizon Capital, a fund manager in Italy, with approximately EUR139bn in assets under management as of March 31, 2010.
Jay Hooley, president and CEO of State Street, said: “Given our successful history in meeting or exceeding our goals for acquired companies, we are confident that the addition of ISPSS to State Street will provide our clients, shareholders and employees with ongoing opportunities for growth.
“We are also delighted to welcome Intesa Sanpaolo’s investment management affiliates, including Eurizon Capital, to our European client roster.”