Under the transaction, Eaton Vance shareholders were offered 0.5833 Morgan Stanley shares and US$28.25 in cash for each Eaton Vance common share, with the choice of receiving it all in cash or all in stock.
Eaton Vance shareholders also received a special dividend of US$4.25 per share in December.
James Gorman, chair and chief executive of Morgan Stanley commented the deal has advanced the company’s transformation strategy, adding more fee-based revenue to complement its investment bank.
“With the addition of Eaton Vance, Morgan Stanley will oversee US$5.4 trillion of client assets across its wealth management and investment management segments,” Mr Gorman said.
“The Morgan Stanley Investment Management and Eaton Vance businesses are delivering strong growth and their complementary investment and distribution capabilities will deliver significant incremental value to our investment management clients.”
Eaton Vance chair and CEO Thomas Faust Jr will become chair of Morgan Stanley Investment Management, joining the Morgan Stanley management committee.
Dan Simkowitz, head of Morgan Stanley Investment Management added: “Our combined organization is exceptionally positioned to deliver differentiated value to our clients and growth opportunities for our employees.”
Mr Faust echoed his new colleague, commenting: “On a combined basis, Morgan Stanley Investment Management and Eaton Vance has unrivalled investment capabilities, distribution and client relationships around the globe.”
Sarah Simpkins
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
