BlackRock will buy SSRM Holdings Inc., the parent of State Street Research & Management and SSR Realty Advisors, from MetLife for at least $375 million in cash and stock. The acquisition, which executives hope to complete by January, will add $52 billion to BlackRock's $314 billion in assets under management, for a combined $366 billion. Most of the combined money - $325 billion - is institutional.
The acquisition will help BlackRock build up its mutual fund business, Laurence D. Fink, BlackRock chairman and CEO said in a conference call. It will consolidate SSR's $10 billion in mutual fund assets with the $16 billion BlackRock runs under the BlackRock brand name. Mr. Fink wouldn't rule out subsequent acquisitions to further build its mutual fund business, saying rising regulatory costs are squeezing smaller mutual fund platforms.