Source: Wells Fargo
Wells Fargo & Company (NYSE: WFC) today announced it has entered into a definitive agreement to sell its Corporate Trust Services (CTS) business to Computershare.
The transaction is expected to close in the second half of 2021, subject to customary closing conditions. Under the terms of the agreement, the purchase price is $750 million.
Wells Fargo’s CTS business provides a wide variety of trust and agency services in connection with debt securities issued by public and private corporations, government entities, and the banking and securities industries. It is annually ranked among the top service providers in most league tables by deal count and dollars serviced.
“This transaction is consistent with Wells Fargo’s strategy of focusing on businesses that are core to our consumer and corporate clients,” said David Marks, head of Wells Fargo Commercial Capital. “Additionally, we believe that Computershare’s similar approach to service and their emphasis on innovative product development will be valuable to our clients and Corporate Trust Services colleagues in the future,” he added.
With decades of experience and 2,300 clients across North America in a variety of industries, Computershare brings a long-term commitment to the business, along with a market-leading client services approach. It is also the largest Title Custodian service provider in the Canadian Mortgage-Backed Securities industry. Computershare’s Frank Madonna will lead the integration, as approximately 2,000 CTS employees across the U.S. are expected to transfer to the company as part of the acquisition.
“We’re excited to welcome these new employees to the Computershare family. We know they are interested in the same things we’re passionate about: providing excellent customer service, supporting diversity and inclusion efforts, and giving back to local communities,” said Madonna. “We’re confident that as our businesses come together following the closing, our client proposition will be second to none in North America,” he added.
Wells Fargo Securities LLC served as exclusive financial advisor, and Sullivan & Cromwell LLP served as legal counsel to Wells Fargo.