JPMorgan Chase & Co has agreed to sell its corporate dealing services unit for an undisclosed sum to Equiniti Group, a UK-based firm that manages stock-based pay plans for companies.
Following the deal, JPMorgan will transfer its business into the existing Equiniti investment services division which now manages custody of around £17billion of customer funds.
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Terms of the transaction have not been disclosed. The deal is scheduled to be completed by 31 August 2014.
As part of the deal, JP Morgan will partner with Equiniti to offer dealing services for share-based compensation packages to its corporate broking clients.
Paul Matthews, managing director of corporate markets at Equiniti, said that the acquisition will further boost the firm’s presence in the UK market.
Equiniti now manages around half of the FTSE 100 share registration services.
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By GlobalDataPaul Matthews, managing director, corporate markets at Equiniti said: "All of the current staff will transfer to our head office and their skills, experience and knowledge will be an important addition to our team. The acquisition also supports the Equiniti Group’s continuing programme of selective investment in the financial services area and underlines our credentials for providing the highest levels of service and expertise in the area of brokerage and investment services."
