State Street Now the Largest Investment Service Provider in Italy;
Expands Presence in Luxembourg
Gains Long-Term Investment Servicing Agreement with Eurizon
Capital, the Largest Fund Manager in Italy
MILAN & BOSTON--(BUSINESS WIRE)--
State Street Corporation (NYSE: STT), one of the world’s leading
providers of financial services to institutional investors, announced
today that it has completed its acquisition of Intesa Sanpaolo’s
Securities Services business (ISPSS) for €1.28 billion in cash, financed
through available capital. State Street has acquired Intesa Sanpaolo’s
custody, fund administration, depository bank and correspondent bank
(banca corrispondente) businesses with approximately €369 billion assets
under custody as of March 31, 2010. State Street has also acquired
approximately €9 billion in cash deposits and will support the acquired
ISPSS balance sheet with approximately €450 million of additional
capital subject to closing adjustment mechanism. As announced in
December 2009, the acquisition is expected to be modestly accretive to
State Street’s earnings in 2010 (excluding merger and integration costs).
“This acquisition marks a significant step forward in positioning State
Street for continued expansion in high-growth markets and providing
comprehensive servicing solutions for our global clients,” said Jay
Hooley, president and chief executive officer of State Street. “Given
our successful history in meeting or exceeding our goals for acquired
companies, we are confident that the addition of ISPSS to State Street
will provide our clients, shareholders and employees with ongoing
opportunities for growth. We are also delighted to welcome Intesa
Sanpaolo’s investment management affiliates, including Eurizon Capital,
to our European client roster.”
ISPSS adds approximately €369 billion in assets under custody; 529
employees in Milan, Turin and Luxembourg; enhances State Street’s
position to be the largest service provider in Italy and strengthens its
presence in Luxembourg. The acquisition also includes a long-term
investment servicing agreement with Intesa Sanpaolo to service its
investment management affiliates including Eurizon Capital, the largest
fund manager in Italy, with approximately €139 billion in assets under
management as of March 31, 2010.
State Street Corporation (NYSE: STT) is one of the world's leading
providers of financial services to institutional investors, including
investment servicing, investment management, and investment research and
trading. With $19 trillion in assets under custody and administration
and $1.9 trillion in assets under management at March 31, 2010, State
Street operates in 25 countries and more than 100 geographic markets
worldwide. For more information, visit State Street at www.statestreet.com.
This news release contains forward-looking statements within the meaning
of United States securities laws, including statements about our goals
and expectations regarding our business, financial condition, results of
operations and strategies, the financial and market outlook,
governmental and regulatory initiatives and developments, the business
environment and other matters that do not relate strictly to historical
facts and are based on assumptions by management. Forward-looking
statements are often identified by such forward-looking terminology as
"plan," "expect," "look," "believe," "anticipate," "estimate," "seek,"
"may," "will," "trend," "target,” “scenario,” and "goal," or similar
terms or variations of such terms. These statements are not guarantees
of future performance, are inherently uncertain, are based on current
assumptions that are difficult to predict and involve a number of risks
and uncertainties. Therefore, actual outcomes and results may differ
materially from what is expressed in those statements, and those
statements should not be relied upon as representing our expectations or
beliefs as of any date subsequent to the date of this news release.
Important factors that may affect future results and outcomes include,
but are not limited to:
-
financial market disruptions and the economic recession, whether in
the U.S. or internationally, and monetary and other governmental
actions, including regulation, taxes and fees, designed to address or
otherwise be responsive to such disruptions and recession, including
actions taken in the U.S. and internationally to address the financial
and economic disruptions that began in 2007;
-
increases in the volatility of, or declines in the levels of, our net
interest revenue or other revenue influenced by market factors,
changes in the composition of the assets on our consolidated balance
sheet and the possibility that we may be required to change the manner
in which we fund those assets;
-
the financial strength and continuing viability of the counterparties
with which we or our customers do business and to which we have
investment, credit or financial exposure;
-
the liquidity of the U.S. and international securities markets,
particularly the markets for fixed-income securities, and the
liquidity requirements of our customers;
-
the credit quality, credit agency ratings, and fair values of the
securities in our investment securities portfolio, a deterioration or
downgrade of which could lead to other-than-temporary impairment of
the respective securities and the recognition of an impairment loss in
our consolidated statement of income;
-
the maintenance of credit agency ratings for our debt and depository
obligations as well as the level of credibility of credit agency
ratings;
-
the ability to complete our announced and pending acquisitions, as
well as future acquisitions, divestitures and joint ventures,
including the ability to obtain regulatory approvals, the ability to
arrange financing as required, and the ability to satisfy other
closing conditions;
-
the risks that acquired businesses will not be integrated
successfully, or that the integration will take longer than
anticipated, that expected synergies will not be achieved or
unexpected disynergies will be experienced, that customer and deposit
retention goals will not be met, that other regulatory or operational
challenges will be experienced and that disruptions from the
transaction will harm relationships with customers, employees or
regulators;
-
the possibility of our customers incurring substantial losses in
investment pools where we act as agent, and the possibility of general
reductions in the valuation of customer assets under our management;
-
our ability to attract deposits and other low-cost, short-term funding;
-
potential changes to the competitive environment, including changes
due to the effects of consolidation and perceptions of State Street as
a suitable service provider or counterparty;
-
the level and volatility of interest rates and the performance and
volatility of securities, credit, currency and other markets in the
U.S. and internationally;
-
our ability to measure the fair value of the investment securities on
our consolidated balance sheet;
-
the results of litigation, government investigations and similar
disputes or proceedings;
-
the enactment of new legislation and changes in governmental
regulation and enforcement that affect us or our customers, and which
may increase our costs and expose us to risk related to compliance;
-
current proposals for legislative and regulatory changes that may
impose special taxes or assessments on us, change the activities in
which we are permitted to engage or change the standard of liability
for certain services that we provide;
-
adverse publicity or other reputational harm;
-
the performance and demand for the products and services we offer,
including the level and timing of withdrawals from our collective
investment products;
-
our ability to grow revenue, attract and/or retain and compensate
highly skilled people, control expenses and attract the capital
necessary to achieve our business goals and comply with regulatory
requirements;
-
our ability to control operating risks, information technology systems
risks and outsourcing risks, and our ability to protect our
intellectual property rights, the possibility of errors in the
quantitative models we use to manage our business and the possibility
that our controls will fail or be circumvented;
-
changes in accounting standards and practices; and
-
changes in tax legislation and in the interpretation of existing tax
laws by U.S. and non-U.S. tax authorities that impact the amount of
taxes due.
Other important factors that could cause actual results to differ
materially from those indicated by any forward-looking statements are
set forth in our 2009 Annual Report on Form 10-K and our subsequent SEC
filings. We encourage investors to read these filings, particularly the
sections on Risk Factors, for additional information with respect to any
forward-looking statements and prior to making any investment decision.
The forward-looking statements contained in this news release speak only
as of the date hereof, May 17, 2010, and we do not undertake efforts to
revise those forward-looking statements to reflect events after that
date.
Source: State Street Corporation
Contact:
State Street Corporation
Investors and Analysts:
Kelley
MacDonald, +1 617/664-2888
or
Media:
Carolyn
Cichon, +1 617/664-8672
or
Hannah Grove, +1 617/664-3377