BNY Mellon to pay $2.31 billion in cash for PNC division

NEW YORK -- Bank of New York Mellon Corp. said Tuesday it is acquiring the global investment servicing business of PNC Financial Services Group Inc. for $2.31 billion in cash.

By buying the Wilmington, Delaware, business, BNY Mellon said it will add $855 billion in assets under administration and become the second-largest provider of fund accounting, administration and transfer agency services.

The business being acquired is known as Global Investment Servicing Inc., and it provides asset mangers and financial advisors with such services.

BNY Mellon said the business has about 4,500 employees. Global investment services CEO Stephen Wynne will be retained.

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.