On Wednesday, Wells Fargo & Co (NYSE:WFC) announced that it was in talks with Britain’s Equiniti Group plc. The top company might soon agree to the deal to sell out its shareowner services business if it manages to reach an attractive agreement with Equiniti Group plc. According to a person familiar with the matter, the provider is expecting about $227 million in the deal.
Wells Fargo Shareowner Services lies in the Mendota Heights and is known globally in the provision of investment-plans and stock-transfer services. It has been serving over 1,200 corporate clients in the U.S with top quality services.
According to some top trusted sources, the about 400 employees that have been working with it will be relocating to start working at Equiniti. It is located in London and is a renowned company which provides similar services in the United Kingdom. Asides from that, this provider is also entrusted with the delivery of employee ownership and benefit plans.
The head of Wells Fargo Shareowner Services, Todd May, while recently addressing a board meeting said, “Joining the Equiniti team will be a great benefit to our clients and team members. Our strong culture of keeping clients and team members at the heart of everything we do is synergistic with Equiniti’s culture.”
It is critical to outline that the Wells Fargo doesn’t expect this particular dealing to drastically impact its annual operating results. On the other hand, Equiniti has given its word in relation to the matter citing that the acquisition would in a large way add to its earnings. This was expected to happen within the first full year of ownership according to Bizjournals.
Wells Fargo & Co has over the years struggled to maintain its position as one of the industry leaders. Technological advancements have lately been sweeping across all corners of the world impacting business in major ways.
Remaining relevant in the world markets has gotten even tougher. The provider has been focusing on proper strategizing to reach its set goals.