Australia's Computershare is to acquire New York-based Georgeson Shareholder Communications for approximately $115 million in cash.
The deal also includes performance incentives payable in Computershare shares that could increase the total value of the deal to approximately $124 million. The cash consideration for the acquisition will be entirely funded through existing cash reserves and debt facilities.
Georgeson Shareholder Communications provides shareholder communications and strategic advisory services to corporations and mutual funds. The firm's forecast FY04 revenues are expected to be $128 million.
The company has offices in London, Toronto, Rome, Sydney, Johannesburg and Manila and employs more than 1500 staff. Computershare expects to retain key executives and members of staff, with the exception of current chairman Alexander Miller who will continue with his existing plans to retire.
Computershare's CEO, Chris Morris, says: "This acquisition places Computershare at the forefront of shareholder communications in the North American market."
The acquisition is expected to close by calendar year end.