State Street to buy B of I unit

Boston-based State Street Global Advisors (SSGA) is to buy Bank of Ireland Asset Management (BIAM) for about €57 million, it was confirmed today.

The sale price includes BIAM's estimated net assets of €14 million.

The sale has been flagged for some time as part of the bank's restructuring plan, which was approved by the European Commission in July. Australian group Macquarie was also in negotiations to take over the Dublin-based asset manager but dropped out of the process.

Bank of Ireland said the transaction would have to be cleared by regulators and the commission. If it is given the go ahead, the unit's 120 staff will transfer to SSGA. No jobs are expected to be lost under the deal.

The transaction is expected to be completed by the first quarter of 2011.

State Street employs more than 2,000 staff in Drogheda, Dublin, Kilkenny and Naas. The company services more than $500 billion in assets and accounts for about 20 per cent of employees in the Irish funds industry.

The US company signalled in August that it was seeking to expand its interest in actively managed investments through acquisitions and reduce the group’s reliance on passive funds.

“This acquisition enables SSGA to expand its range of investment capabilities to include active fundamental management,” said Scott Powers, president and chief executive officer of State Street Global Advisors. “As our clients look for more solutions-driven investment management strategies that span the risk spectrum, the addition of this team and capabilities will enhance our ability to deliver on these needs."

BIAM had about €26 billion in assets under management among more than 500 clients as of September 30th, 2010.