State Street buys Intesa's securities business for $1.87 billion
24 Dec 2009
State Street Corp., a provider of financial services to institutional investors, has acquired Italian banking group Intesa Sanpaolo's securities services business with operations in Italy and Luxembourg.
The transaction is valued at about 1.28 billion ($1.87 billion), in cash at closing, is expected to be completed by the second quarter of 2010.
Intesa Sanpaolo is one of the top banking groups in Europe, serving about 11.1 million customers through 6,100 branches.
The company also has commercial banking operations in 13 countries in Central-Eastern European markets and the Mediterranean basin.
As per the deal, State Street would acquire the global custody, depository banking, correspondent banking (banca corrispondente), and fund administration portions of the ISPSS business.
In addition, assuming the cash balances in the business are consistent with levels at June 30, 2009, State Street expects to acquire approximately $16 billion) in cash deposits at closing.
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