BNY Mellon has agreed to sell its Shareowner Services business to Computershare for $550 million, subject to regulatory approvals.
The purchase price will result in a modest after-tax loss due to the impact of non-deductible goodwill associated with the business, BNY Mellon said in a statement. The transaction is anticipated to close in the third quarter of 2011, subject to regulatory approval.
“This transaction will combine the Shareowner Services business and its employees with an enterprise strongly committed to growth in the global equity administration market space,” says Karen Peetz, vice chairman of BNY Mellon and CEO of BNY Mellon’s Financial Markets and Treasury Services Group. “Our clients will continue to receive the highest level of service and will also benefit from Computershare’s broad global capabilities.”
Computershare is a global provider of transfer agency, share registration, employee equity plans, proxy solicitation, stakeholder communications and other diversified financial and governance services. The transaction will be funded from available cash resources and new credit lines, Computershare says.
This is the largest acquisition in Computershares history, says Stuart Crosby, CEO and president of Computershare. It provides a wonderful opportunity to further demonstrate our technology and processing capabilities to a new group of clients. It also provides Computershare with additional opportunities to participate in the inevitable upturn in corporate actions and global interest rate cycles.
(CG)