The American financial company State Street Corporation announced on Tuesday that it had reached a final agreement with Brown Brothers Harriman & Co (BBH) to "acquire its investor services business, including custody, accounting, fund administration, global markets and technology services" from the latter.

The deal was announced at $3.5 billion (in cash) and is expected to make State Street the world's number one asset servicing firm. BBH will continue to own and operate its separate private banking and investment management businesses independently.

Both parties, which are based in Luxembourg, aim to complete the acquisition by the end of 2021, subject of course to regulatory approvals and other customary conditions. 

As of 30 June, BBH's investor services business held $5.4 billion in assets under custody, adding to State Street's $31.9 billion.

State Street Corporation will pay $3.5 billion to buy the investor services business of Brown Brothers Harriman & Co (BBH). The deal is expected to be finalised in late 2021.