State Street Completes Acquisition of Charles River Development

State Street Corporation (NYSE: STT) today announced that it has completed its acquisition of Charles River Systems, Inc. (Charles River Development). The combination of State Street and Charles River Development will enable the industry’s first-ever global interoperable platform connecting the front, middle and back office with one provider. This platform, supported by deep enterprise data management capabilities, will accelerate investment workflows, provide advanced data aggregation, analytics and compliance tools, and connect and exchange data with other industry platforms and providers.

“The combination of State Street and Charles River Development will create an open platform that will standardize data and systems across multiple asset classes and the entire investment lifecycle. We are delighted to welcome the more than 700 talented employees who join State Street today and look forward to working with the Charles River Development clients to support their current and future business needs,” said Jay Hooley, chairman and CEO of State Street.

State Street also announced today the establishment of a Charles River Development Client Advisory Board to provide ongoing strategic input into the platform development, engage with peers across the industry, as well as shape new products and solutions aligned with market and industry trends. Jenny Tsouvalis, senior vice president and enterprise head of investment reporting, operations and applications for OMERS Administration Corporation, will chair the advisory board.

“I have worked closely with State Street and Charles River Development, and I am excited about the opportunity to chair this new client advisory board,” said Tsouvalis. “From the inception of our relationship with Charles River Development, the functionality has grown each year expanding and offering both front- and middle-office business solutions that we have taken advantage of and implemented. The acquisition by State Street creates a deeper platform to develop additional workflow features and integration to support the front, middle and back offices. As a client, we see this as an opportunity to further grow the product and increase with expanded innovative capabilities.”

John Plansky has been named CEO of Charles River Development. Plansky has led State Street’s Global Exchange business for the last 18 months, where he oversaw the expanded launch of a number of front-office solutions including State Street Verus SM, investible indices and DataGX(SM), State Street’s end-to-end data warehousing solution. As a former partner at PwC and Booz & Co. and CEO of Nervewire, Plansky has a history of leading global teams, growing businesses and integrating teams with different expertise and skill sets. State Street will also continue to benefit from the years of experience that Charles River Development’s founder, Peter Lambertus, brings as he transitions into a planned new role as strategic consultant to the firm.

A new study conducted by Longitude Research for State Street that analyzes asset managers’, owners’ and insurance companies’ sentiments about growth prospects finds that data and technology are increasingly important, with more than 42 percent of survey respondents viewing the development of new tools to achieve an investment advantage as an urgent priority. The global study of more than 500 investment industry executives also found that the ability to extract better insights from data is a key consideration for improvement, and strengthening risk analytics was cited by 43 percent of respondents as a top outcome their technology investment must deliver over the next year. Furthermore, nearly two-thirds (64 percent) of asset managers in the study are investing in new performance analytics tools.

Forward Looking Statements -

This news release contains forward-looking statements as defined by United States securities laws, including statements relating to State Street’s acquisition of Charles River Development and related business, product and servicing effects and considerations. Forward-looking statements are often, but not always, identified by such forward-looking terminology as “will,” “opportunity,” “expect,” “estimate,” “project,” “anticipate,” “plan,” “strategy,” “propose,” “priority,” “intend,” “may,” “objective,” “forecast,” “outlook,” “believe,” “seek,” “trend,” “target,” and “goal,” or similar statements or variations of such terms. These statements are not guarantees of future performance, are inherently uncertain, are based on current assumptions that are difficult to predict and involve a number of risks and uncertainties. Therefore, actual outcomes and results may differ materially from what is expressed in those statements, and those statements should not be relied upon as representing our expectations or beliefs as of any time subsequent to the time this news release is first issued.

Factors that could cause changes in the expectations or assumptions on which forward-looking statements are based cannot be foreseen with certainty and include, but are not limited to:

• the possibility that some or all of the anticipated financial, operational, product innovation or other benefits or synergies of the acquisition will not be realized when expected or at all, including as a result of the impact of, additional costs or unanticipated negative synergies associated with, or problems arising from, the integration of Charles River Development, as a result of regulatory or operational challenges we may experience, as a result of disruptions from the transaction harming relationships with our clients, employees or regulators, or as a result of the strength of the economy and competitive factors in the areas where we and Charles River Development do business;
• potential adverse reactions or changes to client, regulatory, business or employee relationships, including those resulting from the announcement or completion of the acquisition;
• demand for our and Charles River Development’s services and product offerings;
• requirements to obtain the prior approval or non-objection of the Federal Reserve or other U.S. and non-U.S. regulators for, or other market, business or other factors that could challenge our execution or implementation of or cause changes to, the use, allocation or distribution of our capital or other specific capital actions or corporate activities, including, without limitation, acquisitions, dividends, stock purchases and redemptions and investments in subsidiaries;
• the large institutional clients on which we focus are often able to exert considerable market influence and have diverse investment activities, and this, combined with strong competitive market forces, subjects us to significant pressure to reduce the fees we charge for our or may charge for Charles River Development’s products or services and to potentially significant changes in our fee revenue;
• our ability to recognize evolving needs of our and Charles River Development’s clients and to develop products that are responsive to such trends and profitable to us; the performance of and demand for the products and services we and Charles River Development offer; and the potential for new products and services to impose additional costs on us and expose us to increased operational risk;
• our ability to control operational risks, data security breach risks and outsourcing risks, our ability to protect our intellectual property rights, the possibility of errors in the quantitative models we use to manage our business and the possibility that our controls will prove insufficient, fail or be circumvented;
• our ability to expand our use of technology to enhance the efficiency, accuracy and reliability of our operations and our dependencies on information technology and our ability to control related risks, including cyber-crime and other threats to our information technology infrastructure and systems (including those of our third-party service providers) and their effective operation both independently and with external systems, and complexities and costs of protecting the security of such systems and data;
• adverse changes in the regulatory ratios that we are, or will be, required to meet, whether arising under the Dodd-Frank Act or implementation of international standards applicable to financial institutions, such as those proposed by the Basel Committee, or due to changes in regulatory positions, practices or regulations in jurisdictions in which we engage in banking activities, including changes in internal or external data, formulae, models, assumptions or other advanced systems used in the calculation of our capital or liquidity ratios that cause changes in those ratios as they are measured from period to period;
• changes in law or regulation, or the enforcement of law or regulation, that may adversely affect our or Charles River Development’s business activities or those of our or Charles River Development’s clients or counterparties, and the products or services that we or Charles River Development sell, including additional or increased taxes or assessments thereon, capital adequacy requirements, margin requirements and changes that expose us or Charles River Development to risks related to the adequacy of our or Charles River Development’s controls or compliance programs;
• adverse publicity, whether specific to State Street or Charles River Development or regarding other industry participants or industry-wide factors, or other reputational harm; and
• our ability to grow revenue, manage expenses, attract and retain highly skilled people and raise the capital necessary to achieve our business goals and comply with regulatory requirements and expectations.

Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in State Street’s 2017 Annual Report on Form 10-K and its subsequent SEC filings. Investors are encouraged to read these filings, particularly the sections on risk factors, for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this news release should not be relied on as representing State Street’s expectations or beliefs as of any time subsequent to the time this news release is first issued, and State Street does not undertake efforts to revise those forward-looking statements to reflect events after that time.

About State Street Corporation

State Street Corporation (NYSE: STT) is the world's leading provider of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $33.9 trillion in assets under custody and administration and $2.7 trillion* in assets under management as of June 30, 2018, State Street operates globally in more than 100 geographic markets and employs over 38,000 worldwide. For more information, visit State Street's website at www.statestreet.com/platformforgrowth

* Assets under management include the assets of the SPDR® Gold ETF and the SPDR® Long Dollar Gold Trust ETF (approximately $33 billion as of June 30, 2018), for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.

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