Pittsburgh-based Mellon Financial Corporation has entered a definitive agreement to acquire Eagle Investment Systems - a 12-year old privately held developer of Web-based investment management software solutions.
The acquisition, for an undisclosed sum in cash and stock, follows the implementation of a customised version of Eagle's Pace securities data hub and protfolio management system at Mellon subsidiary Newton Invesment Management, in London.
Eagle has experienced significant growth in recent years, with a current annual revenue run rate of $60 million. The company will operate as a seperate unit within Mellon Global Securities Services, which provides custody and investment support services to the worldwide securities industry.
Mellon is expected to use Eagle's technology and 175-strong IT team to strengthen its position in the rapidly-growing investment operations outsourcing marketplace.
Jim Palermo, president of Mellon Global Securities Services (GSS), comments: "Eagle's principal products — Eagle Star, a Web-based global investment accounting system, and Eagle Pace, a Web-based investment data hub and portfolio management system — provide an ideal investment administration platform, particularly in a T+1, straight-through-processing environment."
He says the acquisition will enable Mellon to provide a complete spectrum of capabilities, from the direct licensing of state-of-the-art software to full-service outsourcing solutions.