US financial powerhouse Morgan Stanley said Thursday it had reached a deal to acquire wealth management firm Eaton Vance Corp. for about $7 billion. The transaction will bring another $500 billion in assets under management under Morgan Stanley's umbrella, the companies said in a statement. A press release said there was limited overlap between the firms and highlighted Eaton Vance's presence in environmental, social and corporate governance (ESG) investing through its Calvert funds. "Eaton Vance is a perfect fit for Morgan Stanley," the company's chief said James P. Gorman said in a statement. "This transaction further advances our strategic transformation by continuing to add more fee-based revenues to complement our world-class investment banking and institutional securities franchise." He said that under the deal Morgan Stanley will oversee $4.4 trillion of client assets and AUM across its Wealth Management and Investment Management segments. With the deal Morgan Stanley Investment Management (MSIM), will have over $5 billion of combined revenues, and the combination will bring Eaton Vance's leading US retail distribution together with MSIM's international distribution, they said. Morgan Stanley shares were down 2.6 percent in pre-market trading at $47.45, while Eaton Vance soared 45.8 percent to $59.70. hs-jmb/dw