)
Share transfer company Computershare (ASX: CPU) has entered into an agreement to acquire US compliance services business Corporate Creations Enterprises (CCE) for $142.9 million.
The acquisition will enable Computershare to expand its US footprint as CCE is one of the leading registered agent providers in the US with over 14,000 clients in the country.
Computershare says the acquisition provides a strategic entry point into an "attractive" market.
According to CPU the registered agent market is worth more than $1 billion, and the company envisions scope for long-term market expansion post-acquisition.
In the US registered agents play an integral role in the compliance landscape as companies are required by law to register their entities in every state where they operate.
A registered agent is a third-party appointed as the company's official representative and receives lawsuits, subpoenas, employee garnishments and Government documents on the entity's behalf.
Computershare envisions growth in this sector because the number of corporations are growing, corporations have more entities than before, and corporate compliance is becoming a more complex space.
Over the last 12 months CCE has generated $34.9 million in revenue from its diversified client base; the company's top ten clients represent less than five percent of total revenue.
Computershare CEO Stuart Irving says the group is excited to acquire CCE after collaborating with them to provide Registered Agent services for the last three years.
"Corporate Creations is a compelling strategic fit and accelerates our Issuer Services growth strategy in the complementary, large and growing US registered agent market," says Irving.
"Combined with our own capabilities, Computershare will now be able to deliver an enhanced and integrated product suite and improved service proposition to clients that require US registered agent and entity management services."
Shares in CPU are up 1.23 per cent to $18.07 per share at 12.02pm AEDT.
Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
)
)
)
)
)
