US/GERMANY – State Street Corp. says it is “hitting the ground running” now that it has completed the “primary closing” of its 1.5 billion dollar acquisition of Deutsche Bank’s securities services business.

“We’re hitting the ground running with a strong team in place to lead and execute our integration plan,” says Ronald Logue, president and chief operating officer at State Street.

State Street said in a statement that it has completed the first phase of the acquisition, which was announced in November 2002. It has paid an initial payment of around 1.1 billion dollars to Deutsche Bank.

“A separate closing will be held in the near future for business units and Italy and Austria, upon receipt of applicable regulatory approvals,” it said.

It would also make payments of up to 360 million dollars, based on the performance of the acquisition, in the year following the close of the deal.

State Street also said that as part of the deal it will provide global investment services to Deutsche Bank subsidiaries, including Deutsche Asset Management. It said it has a 10-year agreement with DEAM to provide custody, fund administration, accounting and global securities lending. The agreement has “the potential to expand the mandate to DEAM’s investment management affiliates”.

The company said that around 25% of the acquired businesses’ revenues come from DEAM.

State Street Global Advisors is the largest asset manager in the world, with 785.4 billion dollars in assets under management. As at the end of 2001 it was the ninth largest manager of European pension fund assets with 59.8 billion dollars of such assets under its wing.

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