August 26, 2004 (PLANSPONSOR.com) - BlackRock, Inc
has entered into a definitive agreement to State Street
Research & Management Company and SSR Realty Advisors
Inc, from MetLife for $375 million in cash and
BlackRock said the acquisition of SSRM Holdings Inc.
(SSRM), the holding company of the two units, is expected
to enhance the firm's investment management platform with
additional US equity, alternative investment and real
estate equity management capabilities, expanding the
universe of products offered to institutional and
individual investors worldwide. Additionally,
BlackRock expects the deal to expand the scale and scope of
the firm's mutual fund products and distribution
State Street Research is unrelated to State Street
Following the transaction, BlackRock will manage over
$325 billion for institutional investors, including pension
plans, corporations, insurance companies, banks and other
financial services companies.
As of July 31, BlackRock had $314 billion of assets under
BlackRock expects the combined firm to maintain
significant presence in all of the cities in which SSRM
currently operates, including Boston, San Francisco and
Morristown, New Jersey.
Richard Davis, SSRM chief executive officer will
join BlackRock's management team to ensure a smooth
integration of the two firms and to lead BlackRock's
expanded efforts in Boston. Similarly, Fred
Lieblich, SSR Realty Advisors president and chief
executive officer, is expected to continue to lead the
real estate equity business of the combined firm.
Under the terms of the transaction, MetLife will receive
at closing $325 million in cash and $50 million of
BlackRock class A common stock. Additional cash
consideration, which could increase the purchase price by
up to 25%, may be paid over 5 years contingent on certain
In connection with this transaction, BlackRock and MetLife
have agreed to enter into a cooperation agreement at
closing to enhance and expand the products and services
provided to the clients of SSRM, MetLife and BlackRock.
The transaction has been approved by the Boards of
Directors of BlackRock and MetLife.
Closing is expected in early 2005 pending required
regulatory and fund shareholder approvals and satisfaction
of other customary closing conditions.