Mellon Financial Corporation has agreed terms for the purchase of Standish, Ayer & Wood, a Boston-based fixed income fund management firm with $41bn (€46bn) of assets under management.

Standish provides investment management services to institutions and high net worth individuals. It offers both domestic and international investment services. The consideration is all cash, with additional consideration contingent on Standish's future performance. Martin McGuinn, Mellon's chairman and chief executive officer, said the acquisition was part of Mellon's long-term strategy of investing in high-growth, fee-based businesses.