Wells Fargo & Company has reached an agreement to sell its Corporate Trust Services (CTS) business to Computershare in a $750m deal.
Wells Fargo’s CTS business offers trust and agency services related to debt securities issued by public and private corporations, government entities, and the banking and securities industries.
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It is said to serve more than 14,000 clients.
The transaction is expected to close in the second half of the year, subject to customary closing conditions.
Wells Fargo Commercial Capital head David Marks said the transaction is consistent with the company’s strategy of focusing on businesses that are core to its consumer and corporate clients.
Marks added: “Additionally, we believe that Computershare’s similar approach to service and their emphasis on innovative product development will be valuable to our clients and Corporate Trust Services colleagues in the future.”
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By GlobalDataFollowing the deal, around 2,000 CTS employees across the US will join Computershare, which expects to bolster its North American presence with the acquisition.
Computershare Integration CEO Frank Madonna will lead the transition of the CTS business to the company.
Madonna said: “We’re excited to welcome these new employees to the Computershare family. We know they are interested in the same things we’re passionate about: providing excellent customer service, supporting diversity and inclusion efforts, and giving back to local communities.
“We’re confident that as our businesses come together following the closing, our client proposition will be second to none in North America.”
Computershare, which caters to 2,300 clients across North America in various industries, is said to be the largest Title Custodian service provider in the Canadian Mortgage-Backed Securities industry.
Ongoing overhaul at Wells Fargo
Wells Fargo chief Charlie Scharf has been focusing on overhaul lately in a bid to turn around the group that was caught up in a major sales practices scandal.
Earlier this month, the firm dropped its Abbot Downing brand, which serves the ultra-rich people, and moved it under its larger private bank brand.
Last month, Wells Fargo agreed to sell Wells Fargo Asset Management (WFAM) for $2.1bn to GTCR and Reverence Capital Partners.
In January this year, it was reported that the bank is withdrawing from international wealth management business in order to focus its efforts on serving wealthy investors in the US.
