BNY Mellon bets on growing managed accounts market with Archer acquisition

The Bank of New York Mellon Corporation (“BNY”) (NYSE: BK), a global financial services firm, announced a definitive agreement to acquire Archer Holdco, LLC (“Archer”), a technology-driven provider of managed account solutions for the asset and wealth management sector.

Archer offers a cloud-based platform that equips asset and wealth managers with middle- and back-office solutions. These tools assist in expanding distribution, streamlining operations, launching new investment products, and delivering personalized outcomes for institutional, private wealth, and retail investors.

Strategic Acquisition to Enhance BNY’s Managed Account Services

Emily Portney, Global Head of Asset Servicing at BNY, emphasized the growing significance of managed accounts, noting they enable investment advisors and asset managers to provide customized portfolios at scale. By integrating Archer’s capabilities, BNY aims to offer comprehensive, end-to-end retail managed account solutions across its entire platform. This acquisition positions BNY to tap into the rapidly growing managed accounts market in the U.S., which is projected to exceed $8 trillion in assets within the next three years.

Archer’s integration will also enhance BNY’s existing asset servicing capabilities and provide BNY Investments and BNY Pershing’s Wove wealth platform with broader distribution of model portfolios and access to Archer’s multi-custodial network. Bryan Dori, President and CEO of Archer, highlighted the alignment between Archer’s expertise and BNY’s platform, which will help clients drive long-term growth by creating multi-asset solutions, direct indexing, and tax-optimized portfolios.

Transaction Details and Market Impact

The acquisition is expected to close in the fourth quarter of 2024, pending regulatory approvals. Financial terms were not disclosed, and the transaction is not expected to have a significant impact on BNY’s earnings or its outlook for capital returns.

BofA Securities served as the financial advisor, and Sullivan & Cromwell acted as legal counsel for BNY. Raymond James served as the financial advisor, and DLA Piper acted as legal counsel for Archer. This acquisition is part of BNY’s strategy to bolster its asset management capabilities and provide enhanced services to its clients in a growing market.