Morgan Stanley announced it has entered into a definitive agreement to acquire money manager Eaton Vance, which has over $500 billion in assets under management, in a deal with an equity value of roughly $7 billion.
“Eaton Vance is a perfect fit for Morgan Stanley,” said James Gorman, the chairman and CEO of the wirehouse, in a statement. “This transaction further advances our strategic transformation by continuing to add more fee-based revenues to complement our world-class investment banking and institutional securities franchise.”
Once the deal is completed, “Morgan Stanley will oversee $4.4 trillion of client assets and AUM across its wealth management and investment management segments,” Gorman said.
This deal comes just six days after Morgan Stanley wrapped up its purchase of E-Trade for $13 billion.
While Eaton Vance specializes in fixed income, its operations include Parametric — which offers customized separately managed accounts and direct indexing — and ESG investment provider Calvert.
Dan Simkowitz, the head of Morgan Stanley Investment Management, said the deal provides opportunities for the firm to increase the reach of its asset management operations and its value proposition to clients since the “two businesses have limited overlap and are combining from positions of strength.”