(Reuters) – Investment-related services provider Computershare Ltd said on Wednesday it would acquire U.S.-based trust services provider Wells Fargo Corporate Trust Services for $750 million.
The Melbourne-based company also announced an A$835 million ($637.11 million) entitlement offer to help fund the acquisition.
The acquisition is expected to be accretive to earnings per share by at least 15% on a constant currency and pro forma basis, the company said in a statement, adding that the acquired entity would generate a return of over 15% on invested capital by FY25.
Computershare also expects $80 million in pretax annual cost savings over a five-year period after the completion of the acquisition.
($1 = 1.3106 Australian dollars)
Reporting by Soumyajit Saha in Bengaluru; Editing by Matthew Lewis