Wells Fargo & Company has declared that it has entered into an agreement to sell its corporate trust services business to Computershare, for US$750 million ($985.7 million).
The transaction is expected to close in the second half of 2021, subject to conditions.
The executive vice-president of operations at Computershare, Frank Madonna will lead the integration, while roughly 2,000 corporate trust employees across the US are expected to transfer to the company as part of the acquisition.
“This transaction is consistent with Wells Fargo’s strategy of focusing on businesses that are core to our consumer and corporate clients,” David Marks, head of Wells Fargo Commercial Capital said.
“Additionally, we believe that Computershare’s similar approach to service and [its] emphasis on innovative product development will be valuable to our clients and Corporate Trust Services (CTS) colleagues in the future.”
Computershare is the largest title custodian service provider in the Canadian mortgage-backed securities industry, while Well Fargo’s CTS business provides trust and agency services in connection with debt securities issued by public and private organisations, government entities and banking and securities industries.
Mr Madonna added: “We’re confident that as our businesses come together following the closing, our client proposition will be second to none in North America.”
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].