Bank of New York Mellon Corp. has finally closed the deal to buy PNC Financial Services Group Inc.'s back office operations. The deal is finalized at $2.31 billion, the bank announced on Tuesday.

The deal, which includes buying of $1.57 billion of stock and repayment of intercompany debt for the balance, will provide a much desired "potential for significant revenue and expense synergies," the bank added in its statement. The all-cash acquisition is expected to add to Bank of New York Mellon's profit from the very first year itself.

PNC Financial had put its back office processing for financial advertisers, fund managers, and brokers unit up for sale for over a couple of few months now.

As per Bank of New York Mellon, the deal will make it the No. 2 provider in fund accounting, administration and transfer agency adding $855 billion in assets under administration.

Total assets under administration of the bank were valued $22.3 trillion at the end of 2009. The deal will also elevate the bank to the No. 3 spot in alternative-fund assets under administration.

The bank plans to raise $800 million in equity to fund the transaction.