State Street announced today that it has completed its acquisition of Intesa Sanpaolo's Securities Services business (ISPSS) for Euro 1.28 billion in cash, financed through available capital. State Street has acquired Intesa Sanpaolo's custody, fund administration, depository bank and correspondent bank (banca corrispondente) businesses with approximately Euro 369 billion assets under custody as of March 31, 2010. State Street has also acquired approximately Euro 9 billion in cash deposits and will support the acquired ISPSS balance sheet with approximately Euro 450 million of additional capital subject to closing adjustment mechanism. As announced in December 2009, the acquisition is expected to be modestly accretive to State Street's earnings in 2010 (excluding merger and integration costs).
"This acquisition marks a significant step forward in positioning State Street for continued expansion in high-growth markets and providing comprehensive servicing solutions for our global clients," said Jay Hooley, president and chief executive officer of State Street. "Given our successful history in meeting or exceeding our goals for acquired companies, we are confident that the addition of ISPSS to State Street will provide our clients, shareholders and employees with ongoing opportunities for growth. We are also delighted to welcome Intesa Sanpaolo's investment management affiliates, including Eurizon Capital, to our European client roster."
IISPSS adds approximately Euro 369 billion in assets under custody; 529 employees in Milan, Turin and Luxembourg; enhances State Street's position to be the largest service provider in Italy and strengthens its presence in Luxembourg. The acquisition also includes a long-term investment servicing agreement with Intesa Sanpaolo to service its investment management affiliates including Eurizon Capital, the largest fund manager in Italy, with approximately Euro 139 billion in assets under management as of March 31, 2010.
