State Street Global Advisors will buy Bank of Ireland Asset Management for roughly $79 million, confirmed Scott Powers, president and CEO, in an interview. The deal is expected to close by the first quarter of 2011.
The acquisition will make SSgA the largest asset manager in Ireland, while giving the giant index and quantitative money manager a foothold in the active fundamental equity market, Mr. Powers said.
The Dublin-based firm had roughly $36 billion in assets under management and more than 500 clients. With the closing of the deal, more than 120 BIAM employees are expected to join SSgA in Dublin.
Mr. Powers said BIAM's global equity offerings are one investment product that will be “ready for export beyond Ireland” immediately, that will “appeal to our clients around the world.”
Asked if the BIAM acquisition is the start of a more aggressive move to add additional active fundamental equity and alternatives capabilities to SSgA’s lineup, Mr. Powers said SSgA remains “extremely committed to our passive business,” but open to developing new products internally or acquiring them to meet the needs of clients.
Earlier this week, SSgA reported $1.9 trillion in assets under management as of Sept. 30, up 6.8% from the prior quarter and up 9.7% from the year before.