In a statement, State Street said its acquisition of GE Asset Management (GEAM) will boost State Street Global Advisors’ (SSGA) assets under management by approximately $100 billion.
SSGA chief executive and president Ron O’Hanley said: “GEAM will bring new alternatives capabilities in direct private equity and real estate to SSGA while enhancing our existing active fundamental equity, active fixed income and hedge fund teams.”
According to GEAM president and chief executive Dmitri Stockton, the acquisition will combine the capabilities of two “leading” asset management firms.
State Street Corporation chief executive and chairman Jay Hooley said: “We believe this will help accelerate our strategic plan to extend our capabilities in key areas for our clients.”
“This transaction reflects our view of GEAM as a very high quality organisation with strong cultural alignment with SSGA,” Mr Hooley said.
State Street noted that it will acquire GEAM in a cash transaction with a total purchase price of up to $485 million, subject to adjustments. The transaction is expected to be finalised in the third quarter of 2016 following regulatory approvals.
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