Mellon Financial Corp. of Pittsburgh has announced that it will acquire Standish, Ayer & Wood, a predominantly fixed-income investment manager based in Boston in an all cash deal. Terms of the deal were not disclosed.
The acquisition, which is expected to close in the third quarter, includes a payment at closing in addition to a contingent payment dependent upon Standish's future performance. The firm will remain in Boston but will change its name to Standish Mellon Asset Management, Mellon said.
Standish, Ayer & Wood, founded in 1933, provides investment services to institutional and high-net-worth clients as well as to its proprietary family of 21 mutual funds with a total of $4 billion in assets under management. The firm had been privately held by its 46 directors.
The acquisition will add about $41 billion to the $520 billion Mellon already has under management. It will also add significantly to Mellon's fixed-income capability and allow the firms to cross market products and services to each others' clients, said Steven G. Elliott, Mellon senior vice chairman and CFO.
Mellon is the parent of The Dreyfus Corporation of New York, The Boston Company Asset Management of Boston, and Newton Investment Management Limited of London.