J.P. Morgan Chase & Co. and Systems & Services Technologies, Inc. (SST) announced that the parties have signed a definitive agreement under which JPMorgan will acquire SST, a wholly-owned subsidiary of III Associates. A leading third-party servicer, SST provides a complete line of asset services, which include active and back-up servicing, for various lending institutions, finance companies, and banks. Under the terms of the transaction, SST will operate as a subsidiary of J.P. Morgan Chase & Co. within the firm’s Institutional Trust Services division. Financial terms were not disclosed.
“The SST acquisition reflects our continuing commitment to invest in and enhance our Treasury & Securities Services capabilities,” said Donald H. Layton, vice chairman and co-chief executive officer of the Investment Bank. “These leadership capabilities are a key component of the integrated solutions JPMorgan delivers globally to wholesale clients.”
“This acquisition greatly augments the global trust, agency and servicing capabilities we currently provide our clients,” said Michael K. Clark, executive vice president and business executive for JPMorgan Institutional Trust Services. “Adding SST’s capabilities to JPMorgan’s current asset servicing resources, including its mortgage, automotive finance, and credit card operations, will provide an unparalleled combination of servicing and back-up servicing solutions to our clients. This transaction is further evidence of our strategy to extend into new markets through business development and select acquisitions. The acquisition of SST in the United States and our servicing partnerships in Europe and Asia are excellent examples of our global strategy to extend JPMorgan’s scope of services to our clients.”