The Bank of New York Mellon Corporation BK has acquired Archer Holdco, LLC (“Archer”), a leading technology-enabled service provider of managed account solutions to the asset and wealth management industry. The financial terms of the deal, announced on Sept. 5, were kept under wraps.

Rationale Behind BNY Mellon’s Acquisition Pursuit

This move aligns with BK’s inorganic growth strategy to boost its services. Archer provides comprehensive middle and back-office solutions to asset and wealth managers, enabling them to address the managed account needs of institutional, private wealth and retail investors.

With its fully integrated, cloud-based platform, Archer allows its clients to expand distribution, streamline operations, launch investment products and deliver personalized outcomes to a broader market.

With this acquisition, BNY Mellon would be able to enhance its enterprise platform to support retail-managed accounts. Along with augmenting the company’s existing asset servicing capabilities for managed accounts, Archer will provide BNY Investments and BNY Pershing’s Wove wealth platform for advisors with expanded distribution of model portfolios and access to its multi-custodial network.

Archer’s clients will gain access to fully integrated solutions covering the entire managed account lifecycle, benefiting from the broader capabilities of the BNY enterprise. This deal uniquely positions BK as the leading service provider, aiding asset managers across all fund types for both institutional and retail investors.

BK’s Price Performance & Zacks Rank

Over the past six months, BK shares have risen 31% compared with the industry’s 17.9% growth.

Image Source: Zacks Investment Research

Currently, BNY Mellon carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Acquisitions Pursued by Other Finance Firms

Last month, Blue Owl Capital Inc. OWL agreed to acquire the business of digital infrastructure fund manager IPI Partners, LLC from an affiliate of ICONIQ Capital and an affiliate of Iron Point Partners for nearly $1 billion.

This acquisition is intended to capitalize on the burgeoning market opportunity for financing data centers and the growing investor appetite for cloud and AI-driven investment methods.

The deal is expected to be neutral to Blue Owl's earnings in 2025 and somewhat accretive in 2026. OWL will collaborate with an ICONIQ affiliate to ramp up the company's future growth.

Similarly, BlackRock, Inc. BLK acquired a private equity company — Global Infrastructure Partners (GIP).

The acquisition creates an industry leader in infrastructure, spanning equity, debt and solutions and offers a wide variety of infrastructure sector knowledge and exposure in existing and emerging economies. The combined infrastructure platform will be branded as Global Infrastructure Partners, a division of BlackRock.