Software solutions and professional services company, Computershare (ASX:CPU), has acquired US-based funding, cooperative and risk and analytics services company, Capital Markets Cooperative (CMC).
The company said, in a statement on the ASX, that the acquisition is subject to US regulatory approvals, which are expected to be obtained within three months.
As per the agreement, CMC’s 200 originator clients, with a combined annual loan origination of more than $100 billion, will fall under the Computershare banner once the acquisition goes through. The total acquisition is worth $US71.2 million.
The price comprises $US44 million for the CMC business, in addition to $US27.2 million for its current mortgage servicing rights and portfolio of about $5.4 billion in unpaid principal balances. The mortgage servicing rights purchase price of $US27.2 million is net of the sale of an associated excess servicing strip.
In addition, the company said the initial consideration is $US57.2 million, payable on closing, along with a maximum of $US14 million in deferred consideration to be paid over three years.
Computershare CEO, Stuart Irving, mentioned the company is excited by the acquisition of Capital Markets Cooperative, and that it is a good strategic fit to the company’s existing US mortgage servicing footprint.
“We expect that that the combination of CMC with our current operation will help us become a significantly larger, more profitable, higher returning mortgage services business,” he said.