Who Owns Eaton Vance After $7 Billion Deal

Eaton Vance is now owned by Morgan Stanley after a $7 billion deal. This acquisition was announced in 2020 and marked a significant shift in the company's ownership.

Morgan Stanley acquired Eaton Vance to expand its investment management business. The deal was completed in 2021, bringing Eaton's assets under the management of Morgan Stanley's investment arm.

The acquisition has led to changes in Eaton Vance's leadership and operations. However, the company's core business and product offerings remain the same.

Morgan Stanley has agreed to buy Eaton Vance for about $7 billion in a cash-and-stock deal.

The acquisition advances CEO James Gorman's push to bolster the bank's wealth and investment management businesses.

Eaton Vance shareholders will receive $28.25 per share in cash and 0.5833 Morgan Stanley shares for each share held.

The deal represents a premium of 38% to Eaton's last closing price on Wednesday.

Eaton's shares jumped 36.3% to $55.79, while Morgan Stanley was down 2.6% in premarket trading.

The acquisition will help shore up the performance of Morgan Stanley's investment management business, its smallest business.

Morgan Stanley said the deal will boost Morgan Stanley Investment Management's assets under management to about $1.2 trillion and revenue to $5 billion.

The deal is expected to be break-even to earnings per share immediately and marginally accretive thereafter, Morgan Stanley said.

Eaton Vance is leading in critical secular growth areas, including customized investment solutions through Parametric, individual separate accounts, and responsible ESG investing through Calvert.

The company fills product gaps and delivers quality scale to the Morgan Stanley Investment Management franchise.

The acquisition is expected to enhance client opportunities by bringing Eaton Vance's U.S. retail distribution together with Morgan Stanley's international distribution.

Here are the key figures associated with the acquisition:

The acquisition is subject to customary closing conditions and is expected to complete in the second quarter of 2021.

Morgan Stanley has completed the acquisition of Eaton Vance, a US-based investment management firm.

The deal, worth $7 billion, was announced after Morgan Stanley signed a definitive agreement to acquire Eaton Vance, which had more than $500 billion in assets under management.

Morgan Stanley's Chairman and Chief Executive Officer, James P. Gorman, sees the acquisition as a strategic move to add more fee-based revenues to the company's investment bank.

As a result of the acquisition, Thomas E. Faust, Jr., Chairman and Chief Executive Officer of Eaton Vance, will become Chairman of Morgan Stanley Investment Management and join the Morgan Stanley Management Committee.

The combined organization will oversee $5.4 trillion of client assets across its Wealth Management and Investment Management segments.

This acquisition is expected to deliver significant incremental value to Morgan Stanley's investment management clients.