<p>State Street Corp will buy investment bank Brown Brothers Harriman & Co's (BBH) investor services business for $3.5 billion in cash, the companies said in a statement on Tuesday.</p>.<p>The deal will include BBH's custody, accounting, fund administration, global markets and technology services operations, State Street said.</p>.<p>Founded in 1818 and headquartered in New York City, BBH counts institutions, privately held companies, families and wealthy individuals as its clients.</p>.<p>BBH will operate its separate private banking and investment management businesses after the sale of its investor services unit, the banks said.</p>.<p>The division had $5.4 trillion in assets under custody at the end of June and will add to State Street's $31.9 trillion portfolio.</p>.<p>The deal, which is expected to close by the end of the year, will also give Boston-based State Street access to BBH's expertise in cross-border, alternatives, exchange-traded funds, and other high-growth asset classes.</p>.<p>The move by custodian bank State Street follows media reports that it was exploring options for its asset management business, including a merger with a competitor, as it seeks to gain scale.</p>.<p>Goldman Sachs & Co. LLC served as financial adviser to State Street, while Lazard served advised BBH.</p>.<p>Check out the latest DH Videos here:</p>
<p>State Street Corp will buy investment bank Brown Brothers Harriman & Co's (BBH) investor services business for $3.5 billion in cash, the companies said in a statement on Tuesday.</p>.<p>The deal will include BBH's custody, accounting, fund administration, global markets and technology services operations, State Street said.</p>.<p>Founded in 1818 and headquartered in New York City, BBH counts institutions, privately held companies, families and wealthy individuals as its clients.</p>.<p>BBH will operate its separate private banking and investment management businesses after the sale of its investor services unit, the banks said.</p>.<p>The division had $5.4 trillion in assets under custody at the end of June and will add to State Street's $31.9 trillion portfolio.</p>.<p>The deal, which is expected to close by the end of the year, will also give Boston-based State Street access to BBH's expertise in cross-border, alternatives, exchange-traded funds, and other high-growth asset classes.</p>.<p>The move by custodian bank State Street follows media reports that it was exploring options for its asset management business, including a merger with a competitor, as it seeks to gain scale.</p>.<p>Goldman Sachs & Co. LLC served as financial adviser to State Street, while Lazard served advised BBH.</p>.<p>Check out the latest DH Videos here:</p>