By Niket Nishant and Matt Scuffham
(Reuters) – Morgan Stanley <MS.N> has agreed to buy Eaton Vance Corp <EV.N> for about $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.
The transaction is the latest move by Chief Executive James Gorman to reshape Morgan Stanley into one of the biggest global money managers through a series of acquisitions that began just before he took over more than a decade ago.
Morgan Stanley’s wealth and investment management businesses already account for 40-50% of the bank’s revenue. Adding Eaton Vance would nearly double assets under management within the investment management division compared with June 30 and boost the business’s annual revenue by about one-third. “Eaton Vance is a perfect fit,” Gorman said.
Eaton Vance shareholders will receive $28.25 per share in cash and 0.5833 Morgan Stanley