State Street Global Advisors (SSgA), the investment management business of Boston-based State Street Corp., has agreed to acquire Bank of Ireland Asset Management (BIAM) for approximately €57 million ($79.4 million) inclusive of estimated net assets of the business of €14 million.
Pending regulatory approvals and other closing conditions, the transaction is expected to close in the first quarter of 2011 or earlier. State Street expects the transaction to be slightly accretive to 2011 earnings, excluding one-time costs. Upon closing of the transaction, the BIAM operation in Dublin will transition to State Street Global Advisors Ireland Limited.
With approximately €26 billion ($36.2 billion) in assets under management among more than 500 clients as of Sept. 30, BIAM offers investment solutions to institutional investors and intermediaries including global fundamental equities, fixed income, cash, asset allocation, property and balanced funds, according to a statement.
Upon closing of the transaction, more than 120 employees of BIAM are expected to join SSgA in Dublin.
"This acquisition enables SSgA to expand its range of investment capabilities to include active fundamental management," said Scott Powers, president and chief executive officer of State Street Global Advisors. "As our clients look for more solutions-driven investment management strategies that span the risk spectrum, the addition of this team and capabilities will enhance our ability to deliver on these needs. Like SSgA, Bank of Ireland Asset Management’s investment philosophy is rooted in a disciplined, team-based approach and has a strong track record of excellent performance."
With this acquisition, SSgA will add Dublin as its 10th global investment center from which investment teams manage client assets.
Chris Johns, currently the interim chief executive officer and chief investment officer of BIAM will be named SSgA chief investment officer for fundamental active equity and will report to Rick Lacaille, SSgA’s global chief investment officer.
