Computershare buys UK mortgage administrator

Suitor extends UK business, eyes growth potential in Homeloan Management Ltd.

Computershare (CPU) has agreed to buy a UK third-party mortgage administration business for £47.5 million ($A86.44m) as it extends its mortgage servicing business into the country.

The deal to buy Homeloan Management Limited from Skipton Building Society also includes an adjustment for surplus working capital, plus potential additional payments based on revenue growth in 2015 and 2016.

Computershare chief executive Stuart Irving noted HML's growth potential, saying it would be possible to add value to the business given its alignment with Computershare's core competencies.

The deal is subject to approval from the Financial Conduct Authority and is expected to be earnings per share accretive, although it is not set to make a material contribution to the suitor in fiscal 2015. 

The acquisition follows Computershare's flagged writedowns of $US40 million after closing its Digital Post joint venture and selling its insurance business.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles