Morgan Stanley is to purchase Eaton Vance in a deal which would see its asset management business grow to $1.2 trillion (€1 trillion) in assets.
In a statement made on Thursday, Morgan Stanley said it would buy the Boston-headquartered group, which manages $500 billion of assets. The deal is valued at around $7 billion.
According to Morgan Stanley, the acquisition is designed to grow its institutional investing, wealth management and investment management efforts.
James. P. Gorman, chairman and chief executive of Morgan Stanley, said: “This transaction further advances our strategic transformation by continuing to add more fee-based revenues to complement our world-class investment banking and institutional securities franchise.
“With the addition of Eaton Vance, Morgan Stanley will oversee $4.4 trillion of client assets and AUM across its Wealth Management and Investment Management segments.”
Morgan Stanley’s asset management arm – Morgan Stanley Investment Management – will now have around $1.2 trillion in assets under management and over $5 billion in combined revenues.
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