Computershare Limited (ASX: CPU) today announces that it has entered into an agreement to acquire the assets of Wells Fargo Corporate Trust Services (“CTS”), a leading US based provider of trust and agency services to government and corporate clients (the “Acquisition”).

The Acquisition is expected to generate attractive financial returns for shareholders. The purchase price of US$750m represents an EV/LTM EBITDA acquisition multiple of 8.9x (pre synergies). After including stand-up capex, regulatory capital requirements and full run-rate synergies it represents an EV/LTM EBITDA acquisition multiple of 5.9x 0F (1). The Acquisition is expected to be at least 15% Management EPS accretive on a pro forma FY21 basis including full run-rate synergies1F (2). Based on ongoing organic growth and cost savings, there is a clear pathway to CTS generating 15%+ return on invested capital by FY252F (3).

1 Purchase price plus US$257m of upfront transaction costs, regulatory capital and liquidity and stand up capex equates to ~US$1.0bn total capital deployed. EBITDA on last twelve months’ basis as at 31-Dec-20, with pro forma adjustments to IT costs, detailed on page 21 of the Investor Presentation. Post-synergy multiple includes US$80m of pre-tax full run rate cost synergies expected to phase in over five years post Acquisition close, US$103m in stand up capex and US$115m in regulatory capital (excludes transaction costs).

2 Assumes full run rate pre-tax synergies of US$80m p.a. expected to phase in over 5 years post acquisition close.

3 CTS return on invested capital (ROIC) target by FY25 assuming consensus forward interest rate curve as at 18 March 2021

Also is an Investor Presentation ~ Aquisition & Capital Raising

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02356740-3A564093?access_token=83ff96335c2d45a094df02a206a39ff4

CPU 52 week low here.........

Portfolio of recurring core fees, cyclical event, transaction based revenues and margin income provides strong earnings growth

Final dividend per share (AUD) 40 cps1 Up 33%

US Mortgage Services back to profit. Evaluating strategic options › Inflationary pressures moderating and further cost-out programs under consideration

COMPUTERSHARE LIMITED. (ASX:CPU) - Ann: FY23 Results Market Presentation, page-1 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

What 'not ' to like here: Return (inc div)   1yr: 9.30%   3yr: 24.69% pa   5yr: 8.84% pa

This will compound the cash..