Morgan Stanley plans to acquire Eaton Vance, bulking up its brokerage business.

Morgan Stanley announced Thursday that it planned to acquire Eaton Vance, investment and wealth management firm, in a deal worth $7 billion. The combined group would oversee roughly $1.2 trillion assets and generate more than $5 billion in sales, Morgan Stanley said in a statement.

Morgan Stanley said it expected to extract $150 million in cost savings out of the deal, which it is financing half in cash and half in stock. The companies said they expected the deal to close in the second quarter of next year.

Morgan Stanley has been expanding its money management business, most notably via its $13 billion purchase of E-trade in February. That deal, which officially closed this week, and the acquisition of Eaton Vance brings the Wall Street institution best known for its investment bank a mass-market customer base and a steadier business line.

The asset management industry is under pressure to consolidate, driven by a shift to passive strategies, pioneered by Vanguard, that track indexes and charge lower fees from active investment funds, which aim to beat the market in return for higher fees. Other recent deals include Franklin Resources’ $4.5 billion acquisition of Legg Mason, announced this summer.

There may be more deals on the way: the activist investment firm Trian Fund Management has taken stakes in Invesco and Janus Henderson and reportedly plans to push the two to merge.

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