BNY Mellon has signed a definitive agreement to buy PNC’s Global Investment Servicing business for $2.31 billion in cash. The unit provides custody, fund accounting, transfer agency and outsourcing.

The price includes the purchase of $1.57 billion of stock and repayment of intercompany debt from PNC. BNY Mellon is also raising $800 million in equity as part of the transaction, which is expected to close in the third quarter.

BNY Mellon said the deal will make it the No. 2 provider of fund accounting, administration and transfer agency services to fund managers globally, and that it expands its securities servicing, alternative investment services and managed account platform reporting capabilities worldwide. The deal also adds $855 billion in assets under administration.

“This acquisition significantly strengthens our service offering and market share with asset managers and financial advisers, while delivering attractive returns to our shareholders,” said Robert P. Kelly, chairman and chief executive officer of BNY Mellon. “We expect the transaction to accelerate our growth, deliver economies of scale and strengthen our leadership position for asset servicing and Pershing.”

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