Wells Fargo Enters Agreement with Computershare to Sell Wells Fargo Corporate Trust Services
24 March 2021 - 9:49AM
Business Wire
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.
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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.
About Wells Fargo
Wells Fargo & Company is a leading financial services
company that has approximately $1.9 trillion in assets and proudly
serves one in three U.S. households and more than 10% of all middle
market companies in the U.S. We provide a diversified set of
banking, investment, and mortgage products and services, as well as
consumer and commercial finance, through our four reportable
operating segments: Consumer Banking and Lending, Commercial
Banking, Corporate and Investment Banking, and Wealth and
Investment Management. Wells Fargo ranked No. 30 on Fortune’s 2020
rankings of America’s largest corporations. In the communities we
serve, the company focuses its social impact on building a
sustainable, inclusive future for all by supporting housing
affordability, small business growth, financial health, and a
low-carbon economy. News, insights, and perspectives from Wells
Fargo are also available at Wells Fargo Stories.
Additional information may be found at www.wellsfargo.com |
Twitter: @WellsFargo.
About Computershare Limited
Computershare (ASX: CPU) is a global market leader in transfer
agency and share registration, employee equity plans, mortgage
servicing, proxy solicitation, and stakeholder communications. We
also specialize in corporate trust, bankruptcy, class action, and
utility administration, and a range of other diversified financial
and governance services.
Founded in 1978, Computershare is renowned for its expertise in
high integrity data management, high volume transaction processing
and reconciliations, payments, and stakeholder engagement. Many of
the world's leading organizations use us to streamline and maximize
the value of relationships with their investors, employees,
creditors, and customers. Computershare is represented in all major
financial markets and has over 12,000 employees worldwide.
Cautionary statement about forward-looking statements
This news release contains forward-looking statements about our
future financial performance and business. Because forward-looking
statements are based on our current expectations and assumptions
regarding the future, they are subject to inherent risks and
uncertainties. Do not unduly rely on forward-looking statements as
actual results could differ materially from expectations.
Forward-looking statements speak only as of the date made, and we
do not undertake to update them to reflect changes or events that
occur after that date. For information about factors that could
cause actual results to differ materially from our expectations,
refer to our reports filed with the Securities and Exchange
Commission, including the “Forward-Looking Statements” discussion
in Wells Fargo’s most recent Quarterly Report on Form 10-Q as well
as to Wells Fargo’s other reports filed with the Securities and
Exchange Commission, including the discussion under “Risk Factors”
in our Annual Report on Form 10-K for the year ended Dec. 31, 2020,
available on its website at www.sec.gov.
WF-CF
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Media Trisha Schultz, 424-268-6202
Trisha.Schultz@wellsfargo.com
(or)
Investor Relations John Campbell 415-396-0523
john.m.campbell@wellsfargo.com
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