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American Stock Transfer going on block; bids expected around $1 bln: sources

American Stock Transfer & Trust Co is going up for sale and is expected to seek bids of $1 billion, two sources familiar with the situation said.

American Stock Transfer is in the process of hiring bankers, the sources said.

Founded in 1971, the New York company provides stock-transfer and employee-plan services to more than 2,800 public companies, the website said. Clients include Apollo Global Management, Microsoft, Siemens AG and State Street.

One banker, not one of the two sources, said American Stock Transfer will likely appeal more to strategics than sponsors. “It’s all about scale,” the banking source said.

Pacific Equity Partners invested in American Stock Transfer in 2008. That deal was also valued then at about $1 billion. Since then, American Stock Transfer has acquired AST Fund Solutions LLC in 2011 and D.F. King & Co in 2014.

In 2013, American Stock Transfer refinanced $480 million in debt, which enabled Intermedia Capital Group and Goldman Sachs to cash out, the Wall Street Journal reported at the time.

Pacific Equity Partners, with A$4 billion (US$3.03 billion) of equity funds under advisement, is the largest PE fund in Australia and New Zealand.

The firm considers companies in all industries (except gambling and tobacco-related activities) with enterprise values of A$200 million to A$1 billion, the firm’s website said.

Pacific Equity’s last fund, PEP V, closed in September at its A$2.1 billion hard cap, the website said.

American Stock Transfer could not immediately be reached for comment. A Pacific Equity spokesman, in an emailed response to questions, said the firm declined immediate comment.

Action Item: Contact American Stock Transfer: newbusiness@amstock.com.

Photo courtesy ©iStock/kentoh