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State Street Research bought by BlackRock for $375M


 –  Boston Business Journal

Updated

State Street Research & Management Co., one of the nation's oldest mutual-fund firms, said Thursday morning it was bought by BlackRock Inc. for $375 million, as the New York money manager added stock and real estate investment expertise to its fixed-income products.

BlackRock agreed to pay State Street Research parent company Met Life $325 million in cash and $50 million in stock.

The purchase price may increase by as much as 25 percent if an additional cash consideration is included, BlackRock and Met Life officials said in a statement.

BlackRock will continue a Boston presence, but won't decide on layoffs for the State Street Research staff of about 400 until after the acquisition is complete in early 2005, Lavery said.

BlackRock made the deal because it is trying to reduce its dependence on its bond business, while Met Life was in the process of slowly exiting the money-management business.

The deal makes BlackRock one of the 20 largest asset managers in the world, with $366 billion in assets, it said. BlackRock had $314 billion in assets under management as of July 31, while State Street Research had $52 billion.

For State Street Research, the sale ends its 80-year run, which made it one of the country's oldest fund firms.

State Street Research, which is no relation to State Street Corp., will be rolled into BlackRock and assume that company's name. The State Street Research name may be preserved for some investment products, said spokeswoman Colleen Lavery.