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Exhibit 99.1
INVESTORS FINANCIAL SERVICES CORP. TO PURCHASE CHASE'S ADVISOR CUSTODY UNIT
CONTACT: KAREN C. KEENAN
(617) 330-6001
[email protected]
BOSTON, MA, NOVEMBER 29, 2000 - Investors Financial Services Corp.
(Nasdaq: IFIN) today announced it has signed a definitive agreement to purchase
the Advisor Custody Unit of The Chase Manhattan Bank's National Consumer
Services division. Under the terms of the agreement, the Company will pay up to
$42 million for the business.
Advisor Custody is a specialized unit that provides safekeeping,
advisory and administration services to investment advisors. The unit, which
services approximately $27 billion in assets, will become part of Investors Bank
& Trust Company, a wholly owned subsidiary of Investors Financial Services Corp.
Upon completion of the transaction, assets processed by the Company for clients
will total over $338 billion. Investors Financial expects the transaction to be
completed during the first quarter of 2001 and to be accretive to earnings per
share beginning in mid-2001 and for the full fiscal year, assuming the
successful integration of staff, systems and facilities in mid-2001.
All 58 employees of the Advisor Custody Unit will be offered the
opportunity to remain with the business as employees of Investors Bank & Trust
Company. Both banks intend to move quickly to ensure a seamless transition for
clients and employees. Clients of the Advisory Custody Unit will continue to be
served by Chase until the deal is closed.
"We are extremely excited about the opportunity represented in this
acquisition." stated Kevin J. Sheehan, President and Chief Executive Officer.
"The top 25 clients of the Advisor Custody Unit manage close to $1 trillion in
assets. We believe that our core strategy of providing superior client service
will be an excellent fit for these clients, and that we will benefit from the
added depth and diversity in our client base as a result of the purchase. We
anticipate raising capital to fund both the acquisition and our growth
trajectory over the next several years."
"While the Advisor Custody business has generated attractive profits
for Chase's consumer business, we've determined that it is not in line with our
business strategy, which concentrates on providing a full array of financial
services to individual consumers in our quad-state markets of New York, New
Jersey, Connecticut and Texas," says Gail Schneider, executive vice president in
Chase's National Consumer Services Division. "Investors is a significant player
in the business of providing custody to investment advisors and we believe these
clients will benefit from Investors' strategic focus and continued commitment to
grow this business."
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Investors Financial will broadcast a synchronized slide and audio
conference call regarding this acquisition via the Internet on Thursday,
November 30, 2000, at 4:30 p.m. EST. The call will be accessible on Investor
Financial's home page, at www.ibtco.com. The conference call will also be
available via telephone, at (719) 457-2631, confirmation code 507750. Recorded
replays of the conference call will be available on the web site, and by dialing
(719) 457-0820, confirmation code 507750, beginning on Friday, December 1, 2000.
Investors Financial Services Corp. provides asset administration
services for the financial services industry through its wholly-owned
subsidiary, Investors Bank & Trust Company-Registered Trademark-. The Company
provides global custody, multicurrency accounting, institutional transfer
agency, performance measurement, foreign exchange, securities lending, mutual
fund administration and investment advisory services to financial asset
managers, including mutual fund complexes, investment advisors, banks and
insurance companies. Offices are located in the United States, Canada, Cayman
Islands, and Ireland. Visit Investors Financial on the web at
http://www.ibtco.com.
This news release contains forward-looking statements (statements which
are not historical facts). These statements are based upon certain assumptions
and estimates which might not be realized. Important factors that could cause
actual results to differ materially from those indicated by any such
forward-looking statements are set forth under the heading "Certain Factors That
May Affect Future Results" in the Company's Annual Report on Form 10-K for the
year ended December 31, 1999 and the Company's Quarterly Report on Form 10-Q for
the quarter ended September 30, 2000. Factors that may impact the timing of the
closing of the Advisor Custody Unit of The Chase Manhattan Bank include the
timing of regulatory approvals and satisfaction of closing conditions. Factors
that may effect whether and to what extent the acquisition of the Advisor
Custody Unit is accretive to earnings include the length of time to conversion,
the combined Company's ability to retain existing clients and attract new ones,
the performance of global financial markets, changes in interest rates, the
level of client deposits, the ability of the Company to attract and retain
qualified management and personnel, the ability to timely and fully realize
anticipated revenues, and the cost and availability of acquisition financing.
