Canadian Stock Transfer Company Inc., a portfolio company of Pacific Equity Partners, has agreed to acquire the Issuer Services business of CIBC Mellon Trust Co. No financial terms were disclosed.
Today, Pacific Equity Partners (“PEP”) and CIBC Mellon Trust Company announced they have signed a definitive agreement for PEP to purchase CIBC Mellon Trust Company’s Issuer Services business (stock transfer and employee share purchase plan) through PEP’s portfolio company, Canadian Stock Transfer Company Inc.
With $5 billion of assets under management, Sydney-based PEP has made significant investments in businesses with specialist operations in share registry services, superannuation administration and investor relations. PEP has formed a network of strategic partnerships under Link Market Services (“The Link Group”), which has expanded beyond Australia into global markets such as India, South Africa, the United Kingdom, the United States and, now, Canada.
“The opportunities in North America are exciting,” said PEP founder and Link Chairman Paul McCullagh. “Expanding our capability and presence in Canada should signal to our clients and to the market that we are serious about enhancing our global share registry business and delivering world-class service to clients.”
“Our mission is to bring the best products and services to our clients through great people and state-of-the art technology,” said John McMurtrie, Managing Director of Link. “This acquisition is a natural next step in our strategic journey to strengthen the connection between issuers and their shareholders across borders.”
“The sale of our issuer services business supports our strategic direction of focusing exclusively on our asset servicing business,” said Thomas S. Monahan, President and Chief Executive Officer of CIBC Mellon. “We have experienced unprecedented asset servicing business growth over the past several years and this sale will allow us to increase our focus and resources on continuing to develop innovative products and value-added services for our clients. I’m delighted that our issuer services colleagues will now become part of The Link Group – an organization that shares our commitment to innovation, leadership and client service.”
The transaction, subject to regulatory approvals, is expected to close in October 2010, with the company operating as Canadian Stock Transfer Company, or CST, part of The Link Group network. Terms of the transaction were not disclosed.
CST will join forces with American Stock Transfer (AST) to become the North American division of The Link Group.
Mark C. Healy, president and chief executive officer of AST, will assume responsibility for implementing the network’s North American strategy as President and CEO of both CST and AST.
“This acquisition gives us an immediate strong presence in the Canadian marketplace and further reinforces our position as the largest independent stock transfer agent in North America,” said Mr. Healy. “The Issuer Services business has an experienced management team and a track record of providing excellent customer service. AST has consistently been rated #1 for client satisfaction in the U.S., and we are excited about providing that same standard of service to clients in Canada through CST.”
CIBC Mellon was advised by Blair Franklin Capital Partners Inc. and by Blake, Cassels & Graydon LLP. PEP was advised by Canaccord Genuity Corp. and by Baker & McKenzie LLP.
About CIBC Mellon
CIBC Mellon is 50-50 jointly owned by Canadian Imperial Bank of Commerce and BNY Mellon. CIBC Mellon is a leading provider of financial services for institutions and corporations, providing superior asset servicing, multicurrency accounting, information delivery, securities lending and foreign exchange services in Canada. CIBC Mellon provides services through CIBC Mellon Global Securities Services Company and its sister company CIBC Mellon Trust Company.
Pacific Equity Partners is the most active private equity fund in Australia and New Zealand, providing strategic management experience and capital resources to grow companies in a range of business situations. PEP Fund IV is the largest private equity fund in Australia and the firm has over $5 billion of equity funds under management. Since its establishment in 1998, PEP has made 18 portfolio company acquisitions and more than 20 add-on acquisitions at the company level.
Detailed information about PEP can be found at www.pep.com.au.
About Link Market Services
Link Market Services Limited is a leading premium provider of registry services and technology to financial market participants in Australasia. PEP’s most substantial portfolio company, Link manages approximately ten million holder records, maintains the registers of over 1,000 securities and provides services to over 90 of the S&P/ASX Top 100. Link services its clients seamlessly across Australia, New Zealand, India and South Africa from its offices in Sydney, Melbourne, Brisbane, Perth, Auckland, Mumbai, Port Moresby and Johannesburg.
More information about Link is available at www.linkmarketservices.com.au
American Stock Transfer & Trust Company provides comprehensive stock transfer and employee plan services to over 2,800 public companies and maintains approximately 6,000 issues. AST’s clients are located throughout the United States and in over 22 foreign countries, ranging in size from initial public offerings to Fortune 100 companies. Founded in 1971 and headquartered in New York, AST provides clients with customized solutions to fit their specific needs along with access to the best systems, services, processes and products available today — around the globe.
For additional information about AST, visit www.amstock.com