Equiniti Group buys up Wells Fargo's share registration business for $227m

 
Helen Cahill
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The deal comes after Wells Fargo announced a host of cost-cutting measures (Source: Getty)

Britain's Equiniti Group has said it is buying up Wells Fargo's share registration business for $227m (£176m) as it sets its sights on the US market.

Wells Fargo has said it is focussing on areas of the business essential for growth. Its share registrar arm is the third largest in America, and its clients include Hewlett-Packard, General Electric and Berkshire Hathaway.

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Equiniti, which is a share registration and investor services company, handles more than half of the FTSE 100's dividend payments.

The London-listed company will pay for the acquisition in part with a £122m rights issue and £120m worth of new debt facilities.

The firm said acquiring the Wells Fargo Share Registration & Services (WFSS) business will boost its earnings in the first year of its ownership.

WFSS provides a range of shareholder services including investment plan services, a stock transfer agent, and corporate action to more than 1,200 firms across the US.

Guy Wakeley, Equiniti's chief executive said: "By being in the US we are able to serve the very many companies that issue stock on both sides of the Atlantic."

Greenhill & Co International acted as Equiniti's lead financial adviser, and Citigroup was joint adviser.

Wells Fargo Securities was Wells Fargo's financial adviser, and Wachtell, Lipton, Rosen & Katz acted as legal counsel.

Read more: Wells Fargo profits remain flat as scandal continues to weigh on finances

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