BNY Mellon pays $2.31bn for investment servicing business

The deal with PNC will add $855 billion in assets under administration to BNY Mellon’s fund administration business.

5 February 2010

BNY Mellon has agreed to acquire PNC’s global investment servicing business for $2.31 billion, including the purchase of $1.57 billion of stock and repayment of intercompany debt from PNC.

BNY Mellon plans to raise between $700 million and $800 million in equity as part of the transaction. The all-cash acquisition, which will be accretive in the first year, is expected to close in the third quarter of 2010, subject to necessary regulatory approvals.

PNC’s investment servicing business provides custody, fund accounting, transfer agency and outsourcing solutions for asset managers and financial advisors.

The acquisition will add $855 billion in assets under administration, including $460 billion in assets under custody, to BNY’s platform. The deal will also double the number of funds serviced for accounting and administration.

Stephen Wynne, current CEO of PNC’s global investment servicing division, will remain in that role, reporting to Tim Keaney and Jim Palermo, co-heads of BNY Mellon asset servicing.

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