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Laxman Pai, Opalesque Asia: Morgan Stanley has agreed to buy Boston-based investment manager Eaton Vance Corp for about $7 billion in a cash-and-stock deal that can quickly expand its investment-management business
The Wall Street bank's investment arm Morgan Stanley Investment Management (MSIM) will almost double in size to $1.2tn in assets with the purchase of Eaton Vance, one of America's oldest fund houses.
Combining with Eaton Vance with over $500 billion in assets under management (AUM) will more than triple combined assets under management within investment management, and boost that segment's annual revenue by about a third, Morgan Stanley said in a press release.
MSIM and Eaton Vance are highly complementary with limited overlap in investment and distribution capabilities. "Eaton Vance is a perfect fit for Morgan Stanley," said James P. Gorman, Chairman and Chief Executive Officer of Morgan Stanley.
"With the addition of Eaton Vance, Morgan Stanley will oversee $4.4 trillion of client assets and AUM across its Wealth Management and Investment Management segments," he added.
According to media reports, the move will leave it better positioned to compete against the growing might of passive fund houses BlackRock and Vanguard, as well as against the asset management arms of rival banks JPMorgan and Goldman Sachs.
The transaction is the latest move by Gorman to reshape Morgan Stanley into one of the biggest global money managers through ...................... To view our full article Click here
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