Bank of New York Mellon Corp. says it is acquiring the global investment servicing business of PNC Financial Services Group Inc. for $2.31 billion in cash.
BNY Mellon says it will pay $1.57 billion for the business' stock and intercompany debt. It will raise $800 million in equity as part of the deal.
The deal will close in the third quarter, pending approval by regulators. BNY Mellon says the acquisition will add to its profit immediately.
By buying the Wilmington, Del., business, BNY Mellon says it gains $855 billion in assets under administration and becomes the second-largest provider of fund accounting, administration and transfer agency.