Investment service provider to acquire cross-town rival for $4.5 billion. State Street has agreed to acquire Investors Financial Services Corporation, a global custody fund administration and middle-office process provider to fund complexes, investment advisories, hedge funds, banks and insurance companies in a stock transaction worth approximately $4.5 billion.

"Investors Financial Services Corporation and State Street already share a similar focus, service model and customer type, which makes for a seamless and swift consolidation," says Ronald Logue, chairman and CEO of State Street. "Based on our strong track record of managing large transitions and meeting our goals, we are confident that this acquisition will deliver considerable value to our shareholders, customers and employees."

Post-transaction, State Street will have over $14 trillion in assets under custody -- $2.2 trillion from Investors Financial -- including $3.5 trillion in mutual funds and more than $340 billion in hedge-fund assets.

"We're thrilled to have entered into this agreement with State Street," says Kevin Sheehan, chairman and CEO of Investors Financial. " We are delivering tremendous value to shareholders through this transaction, as we have done since becoming a public company in 1995."

Both companies are based in Boston. -FWR

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