State Street Corp. agrees to buy Goldman Sachs unit for $550m

State Street Corp., a financial services company headquartered in Boston, said Tuesday that it has agreed to pay $550 million to buy Goldman Sachs Administration Services as it looks to become the leading global administrator of hedge funds.

A global service provider to hedge funds, Goldman Sachs Administration Services, or GSAS, administers about $200 billion in single manager hedge fund assets on behalf of approximately 150 investment manager clients. The transaction does not include Goldman Sachs’ Prime Brokerage business, State Street said in a press release.

“The acquisition will strengthen State Street’s global leadership in hedge fund administration and will establish the company as the No. 1 hedge fund administrator globally based on industry survey data,” State Street said in the release. “State Street today is the No.1 servicer of alternative assets in the world with $877 billion under administration at June 30, 2012.”

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Pending regulatory approvals and other customary closing conditions, the transaction is expected to be finalized early in the fourth quarter, the company added.