State Street Corp. (STT) announced a definitive agreement to acquire Charles River Systems, Inc. (Charles River Development), a premier provider of investment management front office tools and solutions. State Street will purchase Charles River Development in an all cash transaction for $2.6 billion.
Charles River Development is a privately held company headquartered in Burlington, Massachusetts with offices in North America, Europe and the Asia-Pacific region. With total revenues of more than $300 million in 2017, its primary focus is providing solutions that automate front and middle office investment management functions across asset classes on a single platform. Charles River Development serves more than 300 clients across institutional, wealth, asset owner and alternative market segments, including 49 of the top 100 asset managers that in aggregate have more than $25 trillion in assets under management.
State Street Corp. expects the acquisition to be accretive to earnings in 2020, excluding acquisition and restructuring costs and based on anticipated revenue growth and cost synergies. The Charles River Development acquisition was included in CCAR as a potential strategic change and the Fed granted a conditional non objection.
On Thursday, State Street announced an increase to its quarterly common stock dividend for the third quarter of 2018 to $0.47 per share, an increase of 12 percent over the second quarter of 2018.
by RTTNews Staff Writer
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