SYDNEY: Computershare Limited (ASX:CPU) has entered into a definitive agreement to acquire the BNY Trust Company of Canada from BNY Mellon (NYSE:BK).
BNY Trust Company of Canada was established in 2001 and is based in Toronto.
With a portfolio of around 1,800 corporate trust mandates, the business provides a range of trust and agency services to Canadian issuers, corporations, banks, and government entities.
The business has a strong market reputation and long track record of profitability. Revenues include recurring trust fees and margin income.
The acquisition enhances Computershare’s existing Canadian Corporate Trust business and enables Computershare to provide corporate trust services across an extended client base.
Stuart Irving, CEO and President of Computershare said: “We are excited by the acquisition of BNY Trust Company of Canada and are looking forward to welcoming the clients and team on board. The acquisition is another step in our strategy of redeploying capital to strengthen and scale our core growth divisions.”
The purchase price payable at completion is estimated at US$63.7 million. The consideration will be funded with Computershare’s existing cash and debt capacity.
The acquisition is expected to complete in the second half of calendar year 2024, subject to regulatory notifications and approvals and other customary closing conditions.