By Lisa Kerner
Charlotte, N.C., Feb. 5 - State Street Corp. signed a definitive agreement to acquire Investors Financial Services Corp. in a stock transaction estimated at $4.5 billion, according to a company news release.
Investors Financial Services' shareholders will receive 0.906 shares of State Street common stock for each share of Investors Financial Services common stock, with about 62 million State Street common shares expected to be issued.
The transaction between the two Boston-based companies should close by the third quarter of 2007 and will give State Street more than $14 trillion in assets under custody, the release stated.
"Investors Financial Services Corp. and State Street already share a similar focus, service model and customer type, which makes for a seamless and swift consolidation," State Street chairman and chief executive officer Ronald E. Logue said in the release.
State Street is the holding company for State Street Bank and Trust.
Investors Financial Services operates as the holding company for Investors Bank & Trust Co.
| Acquirer: | State Street Corp.
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| Target: | Investors Financial Services Corp.
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| Payment per share: | 0.906 shares of State Street common stock
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| Announcement date: | Feb. 5
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| Expected closing: | By the third quarter of 2007
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| Stock price of acquirer: | NYSE: STT; $71.75 on Feb. 2
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| Stock price of target: | Nasdaq: IFIN; $43.27 on Feb. 2
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