State Street Corp. said it will buy the securities services business of Italian banking group Intesa Sanpaolo for about $1.87 billion in cash.

The financial services provider says the acquisition will broaden its presence overseas, as the Intesa unit has offices in Italy and Luxembourg.

State Street will fund the purchase with available capital.

The deal includes the global custody, depository banking, correspondent banking and fund administration components of the securities services operations. The transaction may also include about $16 billion in cash deposits if levels stay consistent with those as of June 30. (AP)