BNY Mellon to Pick Up Global Investment Servicing

February 2, 2010 ( – BNY Mellon has agreed to acquire PNC’s Global Investment Servicing Inc. (GIS) business.

A BNY Mellon news release said GIS is a provider of custody, fund accounting, transfer agency, and outsourcing solutions for asset managers and financial advisers.

According to the announcement, the $2.31-billion purchase price includes the purchase of $1.57 billion of stock and repayment of intercompany debt from PNC. BNY Mellon plans to raise approximately $800 million in equity as part of the transaction. The all-cash acquisition is expected to close in the third quarter of 2010, subject to necessary regulatory approvals.

“We expect the transaction to accelerate our growth, deliver economies of scale and strengthen our leadership position for Asset Servicing and Pershing,” said Robert P. Kelly, BNY Mellon chairman and chief executive officer, in the announcement.

The deal with result in: 

  • BNY Mellon becoming the number two provider in fund accounting, administration, and transfer agency;
  • Adding $855 billion in assets under administration, including $460 billion in assets under custody, and doubling the number of funds serviced for accounting and administration;
  • Improving to number three globally in alternative fund assets under administration, and doubling its European asset base; and
  • Increasing managed account assets to $80 billion.

Based in Wilmington, Delaware, GIS has approximately 4,500 employees. Stephen M. Wynne, current CEO of GIS, will remain in that role, reporting to Tim Keaney and Jim Palermo, co-heads of BNY Mellon Asset Servicing, the announcement said.

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