BNY to Acquire Archer, a Leading Provider of Managed Account Solutions to the Asset and Wealth Management Industry
Rhea-AI Summary
BNY (NYSE: BK) has announced its plan to acquire Archer, a leading provider of managed account solutions for the asset and wealth management industry. This strategic acquisition aims to enhance BNY's capabilities across the entire managed account ecosystem, including manufacturing, distribution, and servicing. Archer's fully integrated, cloud-based platform offers asset and wealth managers a multi-product and multi-channel solution.
The integration of Archer's solutions will allow BNY to offer fully integrated, end-to-end retail managed account solutions across its platform. This move is expected to capitalize on the projected growth of the retail managed account market, which is forecasted to exceed $8 trillion in assets over the next three years in the U.S. The transaction is anticipated to close in the fourth quarter of 2024, subject to regulatory approvals and customary closing conditions.
Positive
- Acquisition of Archer expands BNY's capabilities in the fast-growing managed account sector
- Integration enhances BNY's enterprise platform to support retail managed accounts
- Provides access to Archer's multi-custodial network and expanded distribution of model portfolios
- Targets a market projected to grow at double-digit compound annual growth rate
- Strengthens BNY's position in offering customized portfolios to retail investors at scale
Negative
- Financial terms of the acquisition were not disclosed
- Transaction not expected to materially impact BNY's earnings or capital return outlook
News Market Reaction – BK
In the trading session that priced this news, BK gained 0.38%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
The acquisition will enhance BNY's capabilities across the entire managed account ecosystem, including manufacturing, distribution and servicing
Archer's fully integrated, cloud-based platform provides asset and wealth managers with a multi-product and multi-channel solution
Archer provides asset and wealth managers with comprehensive middle- and back-office solutions to address the managed account needs of institutional, private wealth and retail investors. Through its fully integrated, cloud-based platform, Archer helps its clients to expand distribution, streamline operations, launch new investment products and deliver personalized outcomes to a broader market.
"Managed accounts are one of the fastest-growing investment vehicles in the asset management industry, enabling investment advisors and asset managers to offer customized portfolios to retail investors at scale," said Emily Portney, Global Head of Asset Servicing at BNY. "By combining Archer's market-leading capabilities with BNY's broader footprint and expertise, BNY will offer fully integrated, end-to-end retail managed account solutions across our entire platform."
With the integration of Archer's managed account solutions, capabilities and professional servicing team, BNY will enhance its enterprise platform to support retail managed accounts, a market that is projected to grow at a double-digit compound annual growth rate to over
In addition to augmenting BNY's existing asset servicing capabilities for managed accounts, Archer will provide BNY Investments and BNY Pershing's Wove wealth platform for advisors with expanded distribution of model portfolios and access to Archer's multi-custodial network.
"Today's asset and wealth managers have a strong desire to create multi-asset solutions across a variety of products, along with direct indexing and tax optimized portfolios, to meet the needs of their distribution partners and investors," added Bryan Dori, President and CEO of Archer. "As a new addition to the BNY platform, Archer's expertise, capabilities and scale will be leveraged across all of BNY to help even more clients drive long-term growth for their businesses."
The transaction is expected to close in the fourth quarter of 2024, subject to regulatory approvals and other customary closing conditions. Financial terms were not disclosed. The financial impact of the transaction is not expected to be material to BNY's earnings and its previously communicated outlook for capital returns.
BofA Securities served as financial advisor and Sullivan & Cromwell acted as legal counsel for BNY. Raymond James served as financial advisor and DLA Piper acted as legal counsel for Archer.
1According to Cerulli Inc, The Cerulli Report — | ||
Media
Garrett Marquis
+1 949 683 1503
garrett.marquis@bny.com
Analysts
Marius Merz
+1 212 298 1480
marius.merz@bny.com
About BNY
BNY is a global financial services company that helps make money work for the world – managing it, moving it and keeping it safe. For 240 years BNY has partnered alongside clients, putting its expertise and platforms to work to help them achieve their ambitions. Today BNY helps over
BNY is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Headquartered in
About Archer
Archer is a technology-enabled service provider that helps investment managers deliver solutions aligned with investor needs. With Archer, investment managers can maintain their proven investment process while outsourcing operations and technology to benefit from a service model geared for growth. Archer has expansive connectivity across the industry and deep experience working with asset managers to help them swiftly streamline operations, enter new distribution channels, and launch new products.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the
These forward-looking statements are based upon current beliefs, expectations and assumptions and are inherently subject to a number of known and unknown business, operational, economic, competitive and other risks, uncertainties and important factors, some of which are listed below, that are beyond the control of BNY and could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. Important transaction-related and other risk factors that may cause such differences include, but are not limited to, the following: (i) the occurrence of any event, change or other circumstances that could give rise to the termination of the acquisition agreement; (ii) the transaction closing conditions may not be satisfied in a timely manner or at all, including due to the failure to obtain necessary regulatory approvals or that such regulatory approvals are obtained subject to conditions that are not anticipated; (iii) the announcement and pendency of the acquisition may disrupt Archer's business operations (including the threatened or actual loss of employees, clients or suppliers); (iv) BNY may be unable to successfully integrate Archer's business with BNY or to integrate the business within the anticipated timeframe; and (v) anticipated benefits of the transaction may not be fully realized or may take longer, or be more costly, to realize than expected. The foregoing list of important factors is not exhaustive.
For a detailed discussion of other risk factors regarding BNY, please refer to the risks, uncertainties and factors described in BNY's recent filings with the
All forward-looking statements in this press release speak only as of the date on which such statement is made. BNY undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
View original content:https://www.prnewswire.com/news-releases/bny-to-acquire-archer-a-leading-provider-of-managed-account-solutions-to-the-asset-and-wealth-management-industry-302239374.html
SOURCE BNY