The price amounts to a premium of $1.4 billion more than Pershings book value and may be increased by as much as $50 million if Pershings revenue grows this year. Bank of New York will finance the acquisition through the public issuance of an estimated $900 million in debt and $1.1 billion in equity. The deal is expected to close by the end of the second quarter.
Pershing operates out of 13 locations worldwide and has a client base of more than 850 broker/dealers and investment managers. The firm holds roughly $400 billion in customer assets, including $160 billion in money market and mutual fund assets.