State Street said today that it has agreed to sell its private asset management business to Charles Schwab's U.S. Trust unit for about $365 million. The announcement had been expected since earlier in the week when word of the talks was reported in the Boston Herald and Dow Jones Newswires. Rumors that the two firms have been talking had been circulating for months, according to Reuters.

The deal is expected to close in the fourth quarter of 2003.

The deal will add roughly 180 workers and $11.5 billion in assets to U.S. Trust and give the Schwab unit additional presence in New England and the Boston area.

State Street put the unit on the block as part of its decision to return to its core business areas. The unit accounts for less than two percent to State Street's total revenue and a fraction of its 15,000 employees.  

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