Bank of New York Mellon Corp. said Tuesday it is acquiring the global investment servicing business of PNC Financial Services Group Inc. for $2.31 billion in cash.
By buying the Wilmington, Del., business, BNY Mellon said it will add $855 billion in assets under administration and become the second-largest provider of fund accounting, administration and transfer agency services.
The business being acquired is known as Global Investment Servicing Inc., and it provides asset mangers and financial advisors with services such as custody, transfers and fund accounting.
"This acquisition significantly strengthens our service offering and market share with asset managers and financial advisors, while delivering attractive returns to our shareholders," Robert P. Kelly, BNY Mellon chairman and chief executive officer, said in a statement.
BNY Mellon said the business has about 4,500 employees. Global investment services CEO Stephen Wynne will be retained.
BNY Mellon says it will pay $1.57 billion for the business' stock and intercompany debt. It will raise $800 million in equity as part of the deal.
The companies expect the deal will close in the third quarter, pending approval by regulators.
BNY Mellon says the acquisition will add to its profit immediately.
Shares of PNC Financial, based in Pittsburgh, rose 47 cents to $56.33 in premarket trading.
© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.