NEW YORK (AP) — Morgan Stanley is buying the investment management firm Eaton Vance in a deal valued at about $7 billion.
Eaton Vance, based in Boston, has over $500 billion in assets under management.
Morgan Stanley Chairman and CEO James P. Gorman said in a prepared statement Thursday that Eaton Vance will add more fee-based revenues to its investment banking and institutional securities franchise. The deal will give Morgan Stanley’s investment management arm approximately $1.2 trillion of assets under management and more than $5 billion of combined revenues.
Eaton Vance shareholders will receive $28.25 per share in cash and 0.5833 of Morgan Stanley common stock, or approximately $56.50 per share. Based on the $56.50 per share, the amount paid to Eaton Vance shareholders will consist of about 50 percent cash and 50 percent Morgan Stanley common stock.
Each Eaton Vance shareholder will have the option to choose all cash