Share registry Computershare Ltd (ASX:CPU) says it will sell its employee options administration business in the US and Canada.
Following a restructure, Computershare advises that the business will be transferred to Solium Capital, with Computershare to take around 20% shareholding in Solium Capital as proceeds from the sale.
Solium will pay for the unit with 7.78 million of its shares valuing the company at US $11.6 million.
Chief executive Stuart Crosby says employee options administration continues to be a challenging space in North America and as a result Compureshare believes partnering with a provider such as Solium is the best way to move business forward.
Solium says the acquisition will significantly increase its footprint in the United States.
Computershare reported a profit of $315 million for the year to 30 June 2009.
CPU Price at posting:
$9.05 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)