CIBC Mellon to acquire recordkeeping business of Felcom Data Services
08 October 2009 | 1803 views | 0
Source: CIBC Mellon
Today, CIBC Mellon Global Securities Services Company ("CIBC Mellon") and Jovian Capital Corporation ("Jovian") (JOV: TSX) announced the signing of a definitive agreement for CIBC Mellon to acquire the unitholder recordkeeping and fund administration business of Felcom Data Services Inc. ("Felcom"), a wholly-owned subsidiary of Jovian, for a purchase price of approximately C$4.2 million, subject to adjustments.
The transaction, which is expected to close on or about October 23, 2009, involves the transfer of Felcom's client contracts. CIBC Mellon will offer employment to the majority of Felcom employees who currently support the recordkeeping and fund administration business.
"CIBC Mellon's acquisition of these well-integrated services will provide our investment fund clients with a greater array of top-tier services and product offerings that can be bundled and customized to deliver enhanced productivity and ongoing growth," said Thomas C. MacMillan, President and Chief Executive Officer, CIBC Mellon. "We are pleased to deliver this full and robust complement to our clients' current recordkeeping and fund administration experience."
"We feel that CIBC Mellon is a perfect fit for our Felcom business," said Philip Armstrong, Chief Executive Officer of Jovian. "Their competitive offer, along with their reputation for service excellence, leading position in the Canadian marketplace and wide breadth of custody operations, provide the best benefits for Jovian, and for our Felcom staff and clients. This transaction also unlocks the hidden value in one of our Jovian assets."
Felcom has been providing recordkeeping and fund administration services to investment fund manufacturers since 2001, and offers a total solution to address all investment product administrative requirements. Felcom services a wide breadth of fund products for 17 individual customers with combined assets under administration of C$3B.
"This is a win-win for Felcom and CIBC Mellon," said Ronald C. Landry, President of Felcom. "Felcom's existing clients will benefit from CIBC Mellon's leading custody and other product offerings. In turn, CIBC Mellon's clients will benefit from Felcom's robust technology and the experience of our employees."