The FINANCIAL -- Wells Fargo & Company announced on July 12 it has entered into an agreement to sell its Shareowner Services business to Equiniti Group plc for $227 million.
Equiniti Group is the leading provider of share registration and associated investor services in the United Kingdom. Pending regulatory and Equiniti shareholder approvals, and the satisfaction of customary closing conditions, the transaction is expected to close by the end of Q1 2018.
“In joining Equiniti, our extremely talented team of US-based shareowner services professionals will be ideally positioned to continue to provide their current customers with products and services that best meet their needs, and support Equiniti’s growth plans for the future,” said Ed Blakey, head of Wells Fargo Commercial Capital. “We believe this sale will also allow us to continue to sharpen our focus on areas of our business that are essential for growth.”
Wells Fargo Shareowner Services (WFSS), a division of Wells Fargo Bank, N.A., provides shareowner services in the U.S., including stock transfer agent, corporate action, and investment plan services to more than 1200 public and private companies across the U.S. Founded in 1929, and headquartered in Mendota Heights, MN, the business includes a seasoned team of professionals. As part of the transaction, more than 400 WFSS team members are expected to transition to Equiniti.
Equiniti is a London-based, publicly listed company [EQN.L] and a leading provider of sophisticated technology, administration, processing and payment services solutions. Equiniti is the U.K.’s leading provider of share registration and associated investor services, and also has market leading positions in administration of employee share plans, pension administration and software, and employee benefit plans, according to Wells Fargo.
“Joining the Equiniti team will be a great benefit to our clients and team members,” said Todd May, head of Wells Fargo Shareowner Services. “Our strong culture of keeping clients and team members at the heart of everything we do is synergistic with Equiniti’s culture. Equiniti’s sophisticated technology will ultimately empower our team members to offer enhanced services to clients and our client’s shareowners, while continuing to improve on our industry-leading servicing capabilities. Wells Fargo and Equiniti will work together to ensure a seamless transition.”
Wells Fargo Securities served as exclusive financial advisor to Wells Fargo, with Wachtell, Lipton, Rosen, & Katz serving as legal counsel. Annual operating results for WFSS are not material to Wells Fargo.