REUTERS: Morgan Stanley has agreed to buy Eaton Vance Corp for about US$7 billion in a cash-and-stock deal that can quickly expand its investment-management business and add more offerings for retail investors, the bank said on Thursday.
Subject to regulatory approvals, the two companies expect the transaction to close in the second quarter of 2021. The most emblematic deal of his tenure was Morgan Stanley's decision to buy Smith Barney, which was announced in 2009 when he ran the bank's wealth management business. Gorman was crucial in forging the massive deal, and combining the two companies became his chief task when he was elevated to CEO the next year.
Although Gorman has turned around wealth management through deals, investment management has long been a sore point for the bank. The Eaton Vance deal will certainly help with assets, boosting AUM to US$1.2 trillion from US$665 billion at June 30. The bank expects combined annual revenue of about US$5 billion, compared with US$3.8 billion last year.