Statement from State Street Corporation on Brown Brothers Harriman Investor Services Acquisition

State Street Corporation (NYSE: STT) today announced that it has mutually agreed with Brown Brothers Harriman & Co. (BBH) to terminate State Street’s proposed acquisition of BBH’s Investor Services business.

After consideration of both regulatory feedback and potential transaction modifications to address that feedback, State Street has determined that the regulatory path forward would involve further delays, and all necessary approvals have not been resolved. The proposed modified transaction structure was increasingly complex, presented additional operational risk to State Street and would limit the anticipated transaction benefits relative to original expectations. It would also include delays in the timing and potential limits to the amount of deal synergies. Therefore, we have determined that it is not in the best interests of clients, shareholders or employees to continue to invest time and resources in the transaction in this challenging financial services M&A environment.

“From the beginning of our discussions with BBH in 2021, I have been impressed by the quality of the BBH Investor Services business and its people. The decision not to proceed with this transaction was not taken lightly and is in no way a reflection of the quality of the BBH franchise,” said Ron O'Hanley, Chairman and Chief Executive Officer of State Street Corporation. “Since we announced the proposed acquisition, we maintained our focus on achieving a transaction that would meet our strategic and financial objectives. Our overall strategy is strong and differentiated, and we remain confident in the organic growth trajectory of our business. We will continue to be deliberate in managing our capital in the best interest of our shareholders.”

The Sale and Purchase Agreement does not provide for a contractual penalty by either State Street or BBH in connection with this termination.

About State Street Corporation

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $35.7 trillion in assets under custody and/or administration and $3.3 trillion* in assets under management as of September 30, 2022, State Street operates globally in more than 100 geographic markets and employs approximately 41,000 worldwide. For more information, visit State Street's website at www.statestreet.com.