Share registry firm grabs Canada asset
Computershare bought a string of share registry companies in recent years to boost its international revenue, which accounts for about 76 per cent of total income. Olympia has 650 clients, including 339 publicly listed companies.
Darren Murphy, head of treasury and investor relations, said the transaction was a small "bolt on" acquisition and "minuscule" compared with the large North American purchase in 2011.
"This type of transaction is a genuine bolt on that typically comes with significant synergies that we can extract," he said. "We can take all the information off their systems and put it on ours, consolidate IT, personnel and housing costs."
Computershare last year doubled its North American presence by spending $550 million to buy Bank of New York Mellon's share-owner services division.
Mr Murphy said there was little opportunity for Computershare to make further large scale acquisitions given its market share.
"We generally come up against competition hurdle when it comes to acquisitions," he said.
Frequently Asked Questions about this Article…
Computershare acquired Olympia Corporate and Shareholder Services and Assets in Canada for about $44 million, adding a Canadian share registry business to its portfolio.
The purchase is a strategic ‘bolt‑on’ acquisition aimed at boosting Computershare's international revenue and delivering synergies—such as consolidating IT, personnel and housing costs—by moving Olympia's client data onto Computershare's systems.
Olympia has about 650 clients, including 339 publicly listed companies, according to the article.
International revenue is a major part of Computershare's business, accounting for about 76% of its total income, which helps explain why the company pursues overseas registry acquisitions.
Company management described the Olympia purchase as a small, ‘minuscule’ bolt‑on compared with a large North American purchase in 2011. Separately, last year Computershare doubled its North American presence by spending $550 million to buy Bank of New York Mellon's share‑owner services division.
Computershare expects to extract significant synergies by transferring Olympia's information onto its own systems and consolidating IT infrastructure, personnel and housing costs.
According to Darren Murphy, head of treasury and investor relations, there is little opportunity for further large‑scale acquisitions given Computershare's market share, and the company typically faces competition hurdles when pursuing big deals.
For everyday investors, the deal is a modest, strategic expansion that supports Computershare's international growth strategy and could deliver cost savings through synergies. Because it's a relatively small 'bolt‑on' purchase, it's unlikely to dramatically change the company's financial profile on its own.
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