In what could be viewed as a vigorous push to expand an 89-year-old New York-headquartered US lender’s investment-management business, Morgan Stanley said late on Thursday that the American multinational lender and financial services provider had agreed to a $7 billion cash-and-stock buyout deal for Eaton Vance Corp.
Apart from an expansion at its investment-management business, the Eaton Vance Corp. deal would likely to add further offerings for the retail investors, said Morgan Stanley.
Morgan Stanley acquisition spree continues in search of a global-scale supremacy
In point of fact, latest takeover deal of the New York City-based investment bank and financial services company having had a revenue of $41.42 billion as of December 31, 2019, came forth as Morgan Stanley Chief Executive James Gorman had been looking to a potential revamp of the US lender in a bid to become one of the largest global money managers through a string of takeovers that had begun roughly a decade ago.
Aside from that, followed by the reveal of the acquisition, the Morgan Stanley Chief Executive Gorman was quoted saying that the wealth and investment management businesses of the US lender, which had already accounted for roughly 40 to 50 per cent of the bank’s entire revenue, would be doubling up its assets followed by the completion of the Eaton Vance takeover, while the lender’s annual revenue would likely to be boosted up by a third.
Meanwhile, according to the financial terms of the deal disclosed late on Thursday, Eaton Vance shareholder would receive a $28.25 per share in cash alongside a 0.5833 Morgan Stanley share for each Eaton Vance share they held, marking up a premium of 38 per cent from the Eaton Vance’s closing price on Wednesday, while the stakeholders would also be paid off a one-time dividend of $4.25 per share by Eaton Vance before closing the deal.
Nonetheless, adding that the deal had been “a perfect fit for Morgan Stanley,” the US multinational lender was quoted saying the takeover bid would be subject to regulatory approval, though the companies were expecting to close the transaction by Q2, 2021.