Share registrar Equiniti PLC's (LON;EQN) acquisition of Wells Fargo’s mirror business in the US is a major growth opportunity, according to chief executive Guy Wakeley.
Equiniti paid US$227mln for Wells Fargo Shareholder Services through a mixture of cash and shares.The deal, completed last month, marked its first foray into the US registrar and dividend distribution market.
Underlying profit (EBITDA) rose 6.6% to £98.5mln in 2017, which was ahead of expectations. Revenue was up 6% at £406mln, also beating forecasts, while the dividend went up by 6.3%.
All FTSE clients were retained, with new business added across all divisions.
Wakeley added he was confident Equiniti can sustain its growth in the UK, while Wells Fargo offered a significant growth opportunity.
"Equiniti operates in an environment characterised by significant change, driven by regulation, digitisation and cost reduction.
“The relevance of our services and automated technology capabilities has never been greater.”
Shares rose 2p to 288.5p.