It’s official now, State Street is purchasing Charles River for $2.6 billion. No surprise there, as the acquisition was already announced earlier this year.
Don’t wanna get into the discussion whether SS paid too much in this deal, as it was discussed in the media and the general public. Instead, would like to express a different kind of concern. While there is no question that SS will benefit from the tech solutions and a client base that comes with this buy, there is also a fact that this deal will bring 700 new employees under the SS umbrella. Even though the management stipulated that Charles River will remain a separate entity under SS, it’s just a matter of time before some segments of work start overleaping with the work of some SS’s divisions. Hope I’m wrong, but chances are that some of our workers may be labeled as “not needed” pretty soon.
https://www.finextra.com/pressarticle/75753/state-street-completes-acquisition-of-charles-river-development