Computershare snaps up Olympian TA business 01 November 2013Alberta Reporter: Georgina Lavers
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Olympia Financial Group will sell its transfer agency and corporate trust assets to Computershare Trust Company of Canada for $43 million.
Olympia Financial Group conducts most of its operations through its wholly owned subsidiary Olympia Trust Company, a non-deposit taking trust company.
It is licensed to conduct trust activities in Alberta, British Columbia, Saskatchewan, Manitoba, Quebec, Newfoundland and Labrador, Prince Edward Island, New Brunswick and Nova Scotia.
The firm administers self-directed registered accounts, acts as a registrar and transfer agent for public and private issuers, and offers foreign currency exchange services.
After paying certain executive management profit sharing entitlements and closing costs, the corporation anticipates receiving after-tax net proceeds of approximately $29.6 million (assuming no post-closing adjustments are required).
Pursuant to the agreement, the purchase price may be reduced post-closing by an amount up to $7.5 million in the event that net revenue lost from terminated client agreements exceeds net revenue gained from new business agreements during the one year period following the closing date.
The agreement also provides that $2.5 million will be held in escrow for a period of one year as security for any net revenue adjustment, working capital adjustment or indemnification obligation of the corporation in favour of Computershare required under the agreement.
Rick Skauge, president and CEO of the corporation, said: "While it is always hard to part with such dynamic and talented employees, management believes that Computershare is the best entity to service our clients in an industry that has consolidated in recent years and is moving toward more technologically advanced platforms."
"We are truly grateful for the dedication and service of our transfer agency and corporate trust employees and we are excited for the opportunities that a global company like Computershare may be able to offer them."
Closing of the transaction is subject to certain conditions, which are anticipated to be waived or satisfied by mid-December 2013.
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