Morgan Stanley (NYSE: MS) announced on Thursday it is set to acquire Eaton Vance, an advanced investment strategies and wealth management solutions provider with more than $500 billion in assets under management (AUM), for an equity value of approximately $7 billion. Morgan Stanley reported that the acquisition advances its strategic transformation with three world-class businesses of scale: Institutional Securities, Wealth Management, and Investment Management.
“A leader in value-add fixed income solutions, Eaton Vance fills product gaps and delivers quality scale to the MSIM franchise. The combination will also enhance client opportunities, by bringing Eaton Vance’s leading U.S. retail distribution together with MSIM’s international distribution.”
While sharing more details about the acquisition, James P. Gorman, Chairman and CEO of Morgan Stanley, stated:
“This transaction further advances our strategic transformation by continuing to add more fee-based revenues to complement our world-class investment banking and institutional securities franchise. With the addition of Eaton Vance, Morgan Stanley will oversee $4.4 trillion of client assets and AUM across its Wealth Management and Investment Management segments.”
Morgan Stanley then added that under the terms of the merger agreement, Eaton Vance shareholders will receive $28.25 per share in cash and 0.5833x of Morgan Stanley common stock, representing a total consideration of approximately $56.50 per share. Based on the $56.50 per share, the aggregate consideration paid to holders of Eaton Vance’s common stock will consist of approximately 50% cash and 50% Morgan Stanley common stock.