State Street Corporation has signed a deal to take over DST Systems Portfolio Accounting System (PAS). The deal will mean that the PAS mutual fund accounting and investment management recordkeeping will pass into the hands of State Street.

"With the acquisition of DST's state-of-the-art accounting servicing business, we are adding an important new dimension to the services we provide our existing clients. Transactions like this one strategically position State Street to be the optimal long-term partner who can continually provide the level of flexibility and innovation our clients need to meet their increasingly complex challenges in mutual fund accounting and investment management record keeping processes," said Ronald E. Logue, vice chairman, chief operating officer of State Street Corporation and head of State Street's Investor Services business in a statement.

The firms added that DST will provide data processing support for PAS and State Street will hire approximately 85 employees currently at DST. Representatives of DST have been unavailable to comment on the number of employees currently manning the DST business.

"We are confident that clients of the PAS business will benefit from being associated with a world-class institution like State Street," said Tom McCullough, executive vice president and chief operating officer of DST in the statement. "This business has been successful for DST over the last 20 years and we believe that State Street is in an excellent position to continue and extend that growth. This business is independent of DST's mutual fund transfer agency business and has no impact on DST's core business of mutual fund shareholder accounting." 

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