The deal, which could boost State Street’s assets under management by about $100 billion, is expected to be finalized early in the third quarter.
GE said proceeds from the transaction would be deposited into its pension trust.
Reuters reported in early February that Boston-based State Street has prevailed over other bidders, including Goldman Sachs (gs), for the business.
GE has been disposing assets off GE Capital, a $200 billion financing business, as it seeks to return to its industrial roots.
GE’s asset management arm managed $115 billion in assets as of June 30. It manages retirement plans for a vast majority of the company’s 130,000 U.S. employees, as well as assets for outside institutional investors.
State Street had $28 trillion in assets under custody and administration and $2 trillion in assets under management as of the end of December.
On Tuesday, GE said it had agreed to sell GE Capital’s U.S. hotel franchise loan portfolio to a unit of Western Alliance Bancorp (wal).
The business, which includes outstanding loans of about $1.4 billion, provides real estate financing to owners of limited service hotels.
GE said it would also sell to an unnamed buyer its business that provides financing to Canada’s hospitality and restaurant industries. The unit has about $300 million of loans.
GE said it would gain about $200 million from the deals, which are expected to close in the second quarter.
The deal is expected to immediately add to Western Alliance’s earnings, the bank said in a separate statement.