Computershare Limited (ASX:CPU) has arranged to acquire a US shareholder services business for US$550 million ($507.2 million) in cash, in what would be its largest acquisition yet.
The company, which provides stock registration and transfer services as well as financial technology and services, said it will acquire The Bank of New York Mellon Corporation's Shareowner Services business.
The unit currently provides transfer agency and employee equity plan services to US listed companies. It made US$291 million in revenue for calendar 2010. The business is headquartered in New Jersey.
Computershare CEO Stuart Crosby said the company plans to fold the acquisition into its existing operations, and has assembled an integration team to facilitate this.
“This is the largest acquisition in Computershare's history,” he said. Crosby added that the purchase should give it additional opportunities to participate in what he sees as an inevitable upturn in global corporate activity.
The deal requires approval from US regulators, and if this is not granted, Computershare will have to pay BNY Mellon a US$30 million reverse break fee.
Computershare was founded in Melbourne in 1978, and now provides services in around 20 countries.
CPU shares grew 7.73% on Thursday to $9.620.