Morgan Stanley to buy Eaton Vance

morgan_stanleyMorgan Stanley is to purchase Eaton Vance in a deal which would see its asset management business grow to $1.2 trillion (€1 trillion) in assets.

In a statement made on Thursday, Morgan Stanley said it would buy the Boston-headquartered group, which manages $500 billion of assets. The deal is valued at around $7 billion.

According to Morgan Stanley, the acquisition is designed to grow its institutional investing, wealth management and investment management efforts. 

James. P. Gorman, chairman and chief executive of Morgan Stanley, said: “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’s asset management arm -  Morgan Stanley Investment Management - will now have around $1.2 trillion in assets under management and over $5 billion in combined revenues. 

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