Ambrosius brings more than 30 years of financial services experience, with a successful track record of leading client management, sales and revenue growth, focusing on the needs of asset managers and institutional investors. Ambrosius assumed an expanded role in October 2023 with overall leadership of Investment Services’ client facing activities and full responsibility for its international organisation to better enable a differentiated client experience for clients worldwide. The appointment of a leader solely focused on the investment services business will further strengthen execution, streamline decision making, and provide clients with more effective delivery of products, services, and solutions.

“Joerg is a proven leader whose deep strategic insights, breadth of experience, and client focus distinguish him and will best position State Street to support our clients today and into the future,” said Ron O’Hanley, chairman and chief executive officer of State Street. “He has been instrumental in driving our Investment Services growth agenda and delivering deep client satisfaction and strong results.”

Mostapha Tahiri will remain as State Street’s chief operating officer. Appointed in October 2023, Tahiri has had immediate impact in positioning State Street’s enterprise global operations and technology organisations to deliver greater value for its clients and its business, as well as driving ongoing service quality and productivity improvements through transformation initiatives across the firm.

Ambrosius and Tahiri will continue to report directly to O’Hanley.

O’Hanley continued, “I am confident in our Investment Services strategy to deliver distinctive value to our clients. Joerg’s appointment, coupled with Mostapha’s focus on operational excellence and productivity for the benefit of clients, demonstrates State Street’s commitment to leadership and value creation in this market.”

These changes will further position State Street’s Investment Services business for long-term success as it delivers for our clients and investors, executes on its strategy, and accelerates revenue growth.

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Ron O’Hanley

State Street Corporation (NYSE: STT) has marked the opening of its new global headquarters building at One Congress Street, located in the Bullfinch Crossing area of downtown Boston. The new headquarters embraces the evolving needs of the workforce with flexible workstations and an environment built for increased collaboration and productivity.

“Boston has been home to State Street for more than 230-years and today’s opening further demonstrates our commitment to the city as a hub for both innovation and financial excellence,” said Ron O’Hanley, chairman and chief executive officer of State Street Corporation. “This is the beginning of a new and exciting chapter in our company’s rich history, and one that will provide our employees with a state-of-the-art working environment that will increase our ability to collaborate and ultimately, help us achieve better outcomes for our clients, our employees and the industry.”

State Street occupies approximately 500,000 square feet of space, including wellness amenities and an innovative client centre.

“Boston’s diverse business sector has played an invaluable role in shaping our city over the years, and State Street has roots centuries deep in Boston,” said Mayor Michelle Wu. “I’m grateful that State Street has chosen to continue making Boston its home and look forward to their continued positive influence in our city at the new One Congress headquarters.”

Launches the first new brand identity in more than 50 years

Additionally, State Street is launching a new brand and digital-first visual identity to better reflect the future of the organisation. The new brand is designed to reflect the company’s innovation and history of firsts. Brand remains a critical driver of the company’s success, employee engagement and market value.

“Our new brand reflects our identity and the future of our organisation – one that is leading, transformative and client-centric,” added Lou Maiuri, president, chief operating officer and head of Investment Services for State Street Corporation. “It also demonstrates the essential advantage we deliver to institutional investors with leading financial platforms, data, expertise and solutions that help enhance performance and better decision making.”

State Street has been an integral part of the Boston real estate and development community over the years with headquarters buildings serving as fixtures in multiple locations including the Financial District, Back Bay and Downtown Crossing. Its history of innovation includes servicing the first US mutual fund, the first multi-currency accounting platform, launching and servicing SPY (the first and largest US-listed exchange traded fund), and launching State Street Alpha®, the industry’s first interoperable, comprehensive front-to-back solution.

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Ron O’Hanley

State Street Corporation and Brown Brothers Harriman & Co. (BBH) has announced that they have entered into a definitive agreement for State Street to acquire BBH’s Investor Services business, including its custody, accounting, fund administration, global markets and technology services, for $3.5 billion in cash.

Following the transaction, BBH will continue to independently own and operate its separate Private Banking and Investment Management businesses. The parties are targeting year-end 2021 to complete the acquisition, subject to regulatory approvals and customary closing conditions.

BBH Investor Services is a global asset servicer with a track record of exceptional client service and deep expertise in cross-border, alternatives, ETFs, and other high-growth asset classes. As of June 30, 2021, BBH Investor Services had $5.4 trillion in Assets Under Custody (AUC), adding to State Street’s $31.9 trillion in AUC.

The acquisition is expected to advance State Street’s strategy as an enterprise outsource solutions provider by creating the number one asset servicer globally, strengthening competitive positioning, expanding geographic coverage and enhancing client experience.

“The Investment Servicing industry enjoys strong fundamentals as worldwide growth in financial assets drives industry revenues. This combination with BBH Investor Services helps us consolidate our position as the industry innovator and leader,” said Ron O’Hanley, Chairman and Chief Executive Officer of State Street Corporation. “We are enhancing our leadership position across a range of services, augmenting our position in a number of key markets, growing relationships with many of the leading global asset managers and owners, and increasing our capabilities and scale. Additionally, BBH Investor Services brings us strong talent, including industry leading service excellence and quality execution.”

“We made this decision after careful consideration of the current and future landscape of the global securities servicing industry, including how best to support and innovate for the growing breadth and complexity of our clients’ servicing requirements,” said Bill Tyree, managing partner of BBH. “State Street is the ideal partner – a firm that shares our core values of unmatched client service, integrity, trust, and a long-term commitment to sustainability.”

Upon closing of the transaction, BBH Investor Services employees will move to State Street. The senior management team will transition to State Street in executive leadership roles, and Seán Páircéir, currently partner and Global Head of Investor Services at BBH, will join State Street’s Management Committee.

Transaction details

The acquisition creates meaningful shareholder value by increasing State Street’s earnings growth potential and its pre-tax margin medium-term target. As a result of the anticipated earnings growth from this transaction, State Street is now targeting an increased pre-tax margin of 31%.

Post close, the transaction provides the potential for significant benefits for State Street shareholders from estimated fully-phased in expense synergies of $260 million in year 3 as a result of efficiencies in operational systems and infrastructure, as well as overhead consolidation. Additionally, State Street has identified an estimated $35 million of EBIT from known balance sheet actions and $40 million of EBIT from estimated net revenue synergies in Investment Servicing and Global Markets in year 3.

State Street expects the transaction will be primarily financed through the issuance of common equity, the suspension of common share repurchases before resuming during 2Q22, and cash on hand. The acquisition is expected to be accretive to earnings per share in year 1.

Propels State Street’s core strategy

Leveraging the best technology and capabilities from each company will enhance State Street’s current set of product solutions for new and existing clients. BBH Investor Services brings innovative data connectivity tools to the broad marketplace that will be additive to State Street’s product suite and provides a toolset that represents an important enhancement to its service offering. BBH Investor Services’ Infomediary® platform, which facilitates data transmission and integration among buy-side and sell-side systems, will also support the State Street AlphaSM platform and facilitate integration of clients onto the platform while mitigating future development cost. Adding BBH Investor Services’ list of premier clients to State Street will also expand the base of potential users of State Street Alpha.

The addition of BBH Investor Services will further State Street’s strategic goal of expanding and deepening its presence in key non-US markets, including developed markets such as Japan, Luxembourg, and Ireland, as well as Latin America, which State Street has targeted for growth.

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