We write to share an important update about the proposed transaction between BBH & Co. (“BBH”) and State Street Corporation (“State Street”). We have mutually agreed with State Street to terminate the agreement to sell our Investor Services business to State Street Corporation (NYSE: STT). We made this decision after it became clear that State Street will be unable to obtain necessary approvals from its regulators for the agreed transaction.
We viewed this transaction, which would have combined a scale player with a premium, client-centric specialist, as a uniquely positive opportunity for the industry. BBH has no other plan to sell the Investor Services business or to pursue another transaction.
While this is not the outcome we expected, we want to assure you that BBH is committed to our Investor Services clients, and we are focused on ensuring that you receive the same level of service and dedication that you have come to expect from BBH. Investor Services will continue to be the largest of BBH’s three business lines. We have every confidence in our ability to continue to deliver superior client service through our 5,500 extraordinary employees and our state-of-the-art technology platforms.
We will continue to invest in our people, products and technology, and we commit to continuing that investment trajectory aligned with our clients’ key areas of growth and evolving market requirements. The entire Investor Services leadership team of BBH Partners and Managing Directors remains intact and we have welcomed many new associates to BBH in 2022. We plan to significantly grow our client service and service delivery functions in 2023. We have consistently invested in our core platforms, innovative technology and new features and functionality and we commit to continuing to invest in our solutions in the years ahead.
We gained perspective during this process which has reinforced the distinct position we hold in the asset servicing industry. The market views us as a unique service provider with exceptional talent driven by a culture of service excellence. Investor Services is supported by a private partnership structure which allows us to put our clients first, unlike any other provider in the market today. For more than 200 years, BBH has adapted to changing business conditions, disruptive technologies, and evolving client expectations. Looking forward, we will continue to be deliberate as we manage and evolve our business. Our promise to you is that we will ensure that our future growth is aligned with the best interests of our clients and employees.
Thank you for your business and continued partnership.
Sincerely,
The Partners of Brown Brothers Harriman