Morgan Stanley has completed this week the acquisition of Eaton Vance, a stock and cash transaction announced last August for an equity value of approximately 7 billion dollars.
In a press release, the firm revealed that Eaton Vance common stockholders were offered 0.5833 Morgan Stanley common shares and 28.25 dollars per share in cash for each Eaton Vance common share, and had the opportunity to elect to receive the merger consideration all in cash or all in stock, subject to proration and adjustment. As provided under the merger agreement, Eaton Vance shareholders also received a special dividend of 4.25 dollars per share, which was paid last December 18 to shareholders of record on December 4.
“This acquisition further advances our strategic transformation by continuing to add more fee-based revenues to complement our world-class, integrated investment bank. With the addition of Eaton Vance, Morgan Stanley will oversee 5.4 trillion dollars of client assets across its Wealth Management and Investment Management segments. The Morgan Stanley Investment Management and Eaton Vance businesses are delivering strong growth and their complementary investment and distribution capabilities will deliver significant incremental value to our investment management clients,” said James P. Gorman, Chairman and Chief Executive Officer of the company.
Thomas E. Faust, Chairman and Chief Executive Officer of Eaton Vance, will become Chairman of Morgan Stanley Investment Management and will join the Morgan Stanley Management Committee. “We are pleased to join Morgan Stanley to begin the work of building the world’s premier asset management organization. On a combined basis, Morgan Stanley Investment Management and Eaton Vance have unrivaled investment capabilities, distribution reach and client relationships around the globe“, he commented.
Lastly, Dan Simkowitz, Head of Morgan Stanley Investment Management, claimed to be excited to welcome Eaton Vance: “Our combined organization is exceptionally well positioned to deliver differentiated value to our clients and growth opportunities for our employees”.
For Marcelo Soba