Online Stockmarket Trading Update

Computershare Limited (CPU) has agreed to make two acquisitions – Serviceworks Group (SWG) and Specialized Loan Servicing, LLC (SLS). Based in Melbourne, SWG comprises three businesses: Serviceworks Management; ConnectNowand Switchwise.  SWG had revenue of AUD 41 million in the financial year 2010/11. Initial consideration of AUD 54.3 million is payable on closing and will be debt funded. Additional consideration may be payable depending on SWG’s performance over the next 3 years. Based in Highlands Ranch, Colorado, Specialized Loan Servicing  (SLS) is a primary and special fee-based servicer of residential mortgage loans in the USA. SLS primarily derives its fees from the monthly maintenance of mortgages which involves monitoring, billing, and processing payments; managing communications with borrowers where payments are late; providing inbound and outbound call services; administering loss mitigation including loan modifications, and if necessary managing foreclosures. The initial consideration is USD 113.6 million payable on closing and will be debt funded. Additional consideration may be payable depending on SLS’s performance over the next 3 years.

In announcing the acquisitions, Computershare CEO Stuart Crosby said “We are thrilled to be able to join forces with SWG and SLS. In both cases, the alignment with our core competencies is attractive, as are the quality of both groups’ management and processes. But it is the opportunity to assist the two groups to realise their significant growth potential that excites us the most. “We see both SWG and SLS as exceptionally well positioned to benefit from regulatory change in the markets for the services they provide, with strong organic growth potential as a result. As with all our businesses, we will also be on the look-out for value accretive acquisition opportunities to build on their footprints.

Computershare (CPU) is a global market leader in transfer agency and share registration, employee equity plans, proxy solicitation and stakeholder communications. It also specialises in corporate trust services, tax voucher solutions, bankruptcy administration and a range of other diversified financial and governance services. Emerging from the dynamic environment of the privatisation of the retail energy market in Victoria, the Serviceworks Group has grown from a start-up in 1999 providing advice across the Australian Utilities sector to a vibrant team of approximately 350 dedicated Utilities experts delivering specialist Consulting, Solutions Development and Customer Management Services. SLS, a residential mortgage loan servicer, was launched in 2003 by a group of seasoned mortgage industry professionals. They created a technology and people driven process to raise the level of customer service for some of the biggest names in the financial services industry. SLS has combined a customer-centric philosophy, integrated technology and a wealth of mortgage industry experience to create an exceptional customer care experience. SLS’s executive team and senior managers, combined, have over 160 years of experience in the Mortgage and Financial Services Industries.

www.computershare.com

http://www.traderdealer.com.au/fundamentals/cpu