Wells Fargo & Company (NYSE: WFC) today announced that 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 agreement, the purchase price is $ 750 million.
Wells Fargo’s CTS business provides a wide variety of trust and agency services relating to debt securities issued by public and private companies, government entities, and the banking and securities industries. It is ranked among the top service providers annually in most rankings in terms of number of transactions and dollars served.
“This transaction is in line with Wells Fargo’s strategy of focusing on the businesses that are at the heart of our home and business customers,” said David Marks, director of Wells Fargo Commercial Capital. “In addition, we believe that Computershare’s similar service approach and focus on innovative product development will be valuable to our customers and colleagues in business trust services in the future,” a- he added.
With decades of experience and 2,300 customers across North America in a variety of industries, Computershare brings a long-term commitment to the business, as well as a leading customer service approach on the market. It is also the largest provider of securities depository services to the Canadian mortgage-backed securities industry. Frank Madonna of Computershare will lead the integration, as approximately 2,000 CTS employees across the United States are expected to transfer to the company as part of the acquisition.
“We are delighted to welcome these new employees to the Computershare family. We know they’re interested in the same things that we’re passionate about: providing great customer service, supporting diversity and inclusion efforts, and giving back to local communities, ”said Madonna. “We are confident that as our businesses regroup after closing, our customer proposition will be unmatched in North America,” he added.
Wells Fargo Securities LLC served as exclusive financial advisor and Sullivan & Cromwell LLP served as legal advisor to Wells Fargo.