Equiniti Group plc (LON: EQN), an international technology-led services and payments specialist, has announced that it has completed the acquisition of Corporate Stock Transfer, Inc. CST will become part of Equiniti’s US division, EQ.
CST is a US transfer agent based in Denver, Colorado. It was founded in 1985 and acts primarily for domestic and international public, micro-cap ($50 and $300m market cap) companies.
CST offers a wide range of services, including record keeping, escrow services, annual meeting services and paying agent services and maintains records for over 700 clients. Through the transaction, CST’s existing clients will benefit from access to the broad range of products EQ offers, such as employee stock plans and Equity Compensation Services.
The acquisition presents substantial benefits for EQ including significant projected cost synergies. The micro and small-cap client space is a new growth area for the business and the opportunity to serve the fast-growing Chinese market creates significant opportunities.
Guy Wakeley, Chief Executive of Equiniti Group, commented:
“The acquisition of CST is an exciting step in our journey to consolidate our investment into equity based services in North America and do more in the markets we serve.”
Todd May, CEO of EQ, Equiniti’s US division, added:
“CST’s focus on serving their clients so they can achieve their goals aligns with our approach to service. Our new Shareowner Online and EQ Insight portals will power the growth of this important segment of the industry.
The addition of Corporate Stock Transfer brings opportunities to leverage our technology and operating model as well as adding a new strategic site in Denver to our growing US footprint.”
Carylyn Bell, President and founder of Corporate Stock Transfer, Inc, said:
“We’re delighted to be joining EQ, which shares our value of service excellence. Together we will be able to offer our clients an even broader range of services powered by industry-leading technology.
The combination of our businesses presents a compelling proposition for our existing clients and exciting growth prospects for the team. I look forward to working with our new colleagues to capitalise on this opportunity.”