MS - Morgan Stanley to Acquire Eaton Vance in $7 Billion Deal
The investment bank Morgan Stanley (NYSE: MS) said it will acquire the Boston-based investment management firm Eaton Vance (NYSE: EV) in a part-cash, part-stock deal valued at roughly $7 billion.
Morgan Stanley will pay Eaton shareholders $28.25 per share in cash and 0.5833x of Morgan Stanley common stock, representing a total consideration of approximately $56.50 per share, which is 38% higher than Eaton Vance's closing price on Oct. 7. Additionally, Eaton Vance will pay its shareholders a special, one-time cash dividend of $4.25 per share.
The deal will give Morgan Stanley another $500 billion in assets under management (AUM), bringing total AUM in its investment management division to nearly $1.2 trillion, with combined revenues of more than $5 billion.
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Morgan Stanley to Acquire Eaton Vance in $7 Billion Deal