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Morgan Stanley acquires asset manager Eaton Vance for $ 7 billion

(New York) US investment bank Morgan Stanley announced on Thursday that it will buy asset manager Eaton Vance for $ 7 billion in a transaction designed to strengthen its asset management and investment activities. investment.

Posted Oct 8, 2020 at 8:37 am

Agence France-Presse

Under the terms of the agreement, shareholders of Eaton Vance will be rewarded in cash and Morgan Stanley stock at a value representing a premium of 38% from Wednesday's closing price.

Founded in 1924 and based in Boston, the company manages $ 500 billion in financial investments.

She "is a perfect fit for Morgan Stanley," said James Gorman, CEO of the New York bank.

"This transaction advances our strategic transformation by continuing to add fee-based revenues to complement our investment banking and merchant banking franchises," he added.

With Eaton Vance, Morgan Stanley will have $ 4.4 trillion in assets under management.

Shares of Morgan Stanley fell 1.15% in electronic trading on the New York Stock Exchange on Thursday, while shares of Eaton Vance were up 45%.

The transaction should be completed in the second quarter of 2021. approximately $ 150 million and new sources of income.

Morgan Stanley wants to expand its traditional investment banking.

She recently completed the $ 13 billion buyout of online brokerage E * Trade to open up more broadly to small savers.

Written by Rahis

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