State Street completes GSS buy in Austria
AUSTRIA – State Street Corp. has completed its purchase of Deutsche Bank’s securities services arm in Austria, the last piece of the jigsaw of a 1.5 billion-dollar acquisition.
The Boston-based bank said it has closed the acquisition of the Austrian portion of Deutsche’s Global Securities Services business. It bought the GSS business from the German bank in January.
“This event marks the completion of the closings for the GSS business worldwide,” State Street said in a statement. The Austrian close follows the completion of the purchase of GSS in Italy a month ago.
The Austrian office will be run by Andrea Steindl, 46, who was formerly with Deutsche. She will report to Yoram Matalon, managing director of State Street Bank GmbH in Frankfurt. The office has eight staff, who have transferred to State Street.
State Street says it remains “well on track” to keep 90% of the GSS client revenue. This week it lost out as several of the Federal Home Loan Banks in the US transferred to rival Citigroup.
Chief operating officer Ron Logue says: "As we expected a few GSS clients have chosen to consolidate their servicing with other providers, such as several of the Federal Home Loan Banks in the United States representing approximately 170 billion dollars in assets.
“As of today, approximately five percent of total client revenue is planning to transition to other providers - an increase of about one percent since the last update we provided in June.”