Computershare to buy BNY Trust Company of Canada for $98m
Make us a preferred source
Make us a preferred source on Google
The news: Share registry firm Computershare will buy the BNY Trust Company of Canada from US bank BNY Mellon.
The numbers: Computershare will pay USD63.7 million ($97.7 million) for the Canadian business, with the acquisition to be funded from existing cash and debt capacity. The Toronto-based BNY Trust has a portfolio of around 1,800 corporate trust mandates, and provides a range of trust and agency services to Canadian issuers, corporations, banks and government entities.
The context: The deal comes months after Computershare divested its US mortgage business for $1.1 billion. On Friday, it said the acquisition would enhance its existing Canadian Corporate Trust business and help provide corporate trust services across an extended client base.
It said the BNY Trust business had a strong market reputation and long track record of profitability, with revenue including recurring trust fees and margin income.
Computershare CEO Stuart Irving said the acquisition is another step in the company’s strategy of redeploying capital to strengthen and scale core growth divisions.
The source: ASX announcement
