Oct 8, 2020 - Economy

Morgan Stanley agrees to $7 billion deal to buy Eaton Vance

Illustration of the Wall Street bull stuffed full of cash.

Illustration: Aïda Amer/Axios

Morgan Stanley on Thursday announced an agreement to buy Boston-based investment manager Eaton Vance for $7 billion in cash and stock.

Why it matters: This solidifies the idea that Morgan Stanley views acquisition as its best path to predictable growth, as it comes just days after completing a $13 billion deal for E*Trade.

Details: Eaton Vance shareholders will receive $28.25 per share in cash and 0.5833x per share in Morgan Stanley common stock, working out to around $56.50 per share (38% premium on yesterday's closing price).

  • The deal would add more than $500 billion to Morgan Stanley Investment Management's AUM, bringing the combined total to $1.2 trillion.

The bottom line, via Axios' Felix Salmon: James Gorman is bringing M&A back to the bulge bracket. It's been a while.

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