State Street Corp. said Wednesday it has agreed to acquire GE Asset Management from General Electric Co. in a deal expected to cost up to $485 million in cash. GE has been selling all of its financial assets to focus on its core industrial businesses. The deal is expected to close in the third quarter and to boost operating per-share earnings in the first year after closing. The asset manager has more than $100 billion in assets under management and more than 100 institutional clients. State Street said it expects revenue from the deal to come to about $270 million to $300 million in the first year after close. It expects merger costs of $70 million to $80 million through 2018. State Street and GE shares were not yet active in premarket trade. State Street shares have lost 21% in the last 12 months, while the S&P 500 has lost 1.5%.
Copyright © 2016 MarketWatch, Inc.
Continue Reading Below