Australian share registry heavyweight, Computershare Limited (ASX: CPU) has today seen its share price drift 1% higher following the announcement of an acquisition this morning.
In an ASX market release Computershare said it had entered into an agreement to acquire Valiant Trust Company assets (VTC) from Canadian Western Bank, for a maximum of CAD 33 million.
VTC is a provider of transfer agency, corporate trust and employee share plans to customers across Canada. VTC's normalised annual revenues are approximately CAD 8 million.
Today's deal – expected to close in early May 2015 – will complement Computershare's current operations in the region, with the company stating it, "expects to achieve synergies consistent with those achieved with previous transactions of a similar nature."
Chief Executive Officer, Stuart Irving said, "We continue to seize acquisition opportunities in our existing verticals when they arise. We are excited about this opportunity to extend our services in the Canadian market."
"Given our expertise in integrating businesses like this, VTC's clients can be sure that they will experience a seamless transition and continuing high levels of service going forward," Mr Irving said.
In its most recent half-year, Computershare's Canadian operations recorded revenue of $US96.7 million and EBITDA (earnings before interest, tax, depreciation and amortization) of $US48.9 million.
