Financial services company Bank of New York Mellon (BNY Mellon) has agreed to acquire Archer Holdco, a technology-enabled service provider of managed account solutions for the asset and wealth management sector.
The financial terms of the deal were not revealed.
Established in 2000, Archer offers middle- and back-office solutions to asset and wealth managers to meet the managed account requirements of institutional, private wealth, and retail investors.
This firm supports its clients in expanding distribution, optimising operations, launching new investment products, and offering personalised outcomes to a wider market through its fully integrated, cloud-based platform.
Archer president and CEO Bryan Dori said: “Today’s asset and wealth managers have a strong desire to create multi-asset solutions across a variety of products, along with direct indexing and tax optimised portfolios, to meet the needs of their distribution partners and investors.
“As a new addition to the BNY platform, Archer’s expertise, capabilities and scale will be leveraged across all of BNY to help even more clients drive long-term growth for their businesses.”
Through the acquisition of Archer’s managed account solutions, capabilities and professional servicing team, BNY Mellon aims to advance its enterprise platform to empower the retail managed accounts sector.
Additionally, the integration will bolster BNY Mellon’s asset servicing capabilities. It will also provide expanded distribution of model portfolios through BNY Investments and BNY Pershing’s Wove wealth platform, benefiting from Archer’s multi-custodial network.
BNY Mellon asset servicing global head Emily Portney said: “Managed accounts are one of the fastest-growing investment vehicles in the asset management industry, enabling investment advisors and asset managers to offer customised portfolios to retail investors at scale.
“By combining Archer’s market-leading capabilities with BNY’s broader footprint and expertise, BNY will offer fully integrated, end-to-end retail managed account solutions across our entire platform.”
Subject to regulatory approvals and customary conditions, the transaction is anticipated to be completed in Q4 2024.
For the transaction, BofA Securities and Sullivan & Cromwell acted as the financial adviser and legal counsel, respectively, for BNY Mellon. Raymond James and DLA Piper served as the financial adviser and legal counsel, respectively, for Archer.
In April this year, BNY Mellon joined forces with Accenture to transform financial services offerings to power accelerated growth for their joint customers.
