State Street set to buy Goldman hedge fund division
STATE Street is to buy a division of Goldman Sachs employing 40 people, in a deal worth hundreds of millions of dollars.
In a statement, the US bank, which employs more than 2,000 people in Ireland, said it will pay $550m for the hedge fund administrator Goldman Sachs Administration Services (GSAS), which employs 40 people in Dublin.
The cash transaction will see the Goldman staff transfer across to State Street with the deal.
No job losses are expected as a result of the takeover.
Pending regulatory approvals and other customary closing conditions, the transaction is expected to be finalised early in the fourth quarter of 2012.
State Street expects the purchase to be "earnings accretive in the first full year of operation on a cash basis".
State Street's executive vice president and gloal head of the firm's alternative investments team said: "Servicing alternative assets remains a strategic focus for State Street.
"We expect that GSAS clients will benefit from our robust and flexible global servicing platform that is scalable for funds of all types and sizes.
"Our continued investment in our global operating platform and technology solutions makes us well-positioned to meet clients' increasing needs for regulatory compliance, reporting, transparency and risk management requirements."