NEW YORK -- Morgan Stanley and Citi announced today a merger of each company's respective brokerage units, a move that brings $1.7 trillion in client managed assets under one operation.

Morgan Stanley's global wealth management group and Citi's Smith Barney, Quilter in the United Kingdom and Smith Barney Australia will combine into a new joint venture to be called Morgan Stanley Smith Barney, according to a Citi press release.

The combination brings in more than 20,000 financial advisers, $1.7 trillion in client assets, $14.9 billion in pro-forma combined revenues and a footprint of more than 1,000 offices worldwide.

Citi will exchange 100% of its Smith Barney, Smith Barney Australia and Quilter units for a 49% stake in the joint venture and an upfront cash payment of $2.7 billion. Morgan Stanley will exchange 100% of its global wealth management business for a 51% stake in the joint venture.

The transaction is slated to create an estimated $1.1 billion in cost savings, according to Citi and Morgan Stanley.