TMX Group reveals that it has finalized the acquisition of AST Investor Services Inc. (Canada) and its subsidiary AST Trust Company (Canada), an established provider of transfer agency, corporate trust, and various other services.
As mentioned in the announcement, the total consideration of the acquisition was $165 million which reportedly includes $30 million in cash. The deal had first been announced in September of last year.
The acquisition should help with improving the competitive position of TMX Group’s TSX Trust business by adding an extensive portfolio of transfer agency, equity plan solutions, corporate trust, structured finance, and proxy-related services.
By widening the overall scope and scale of its product offerings, TSX Trust has managed to strengthen its ability to address the requirements of clients across the marketplace.
John McKenzie, CEO at TMX Group, had stated in September 2020:
“The acquisition of AST Trust Company (Canada) will significantly strengthen TMX’s ability to serve the needs of companies across the marketplace by bringing to our TSX Trust business a proven team of industry professionals, and a wider range of products and technology capabilities. From a strategic perspective, this transaction will help to accelerate TSX Trust’s growth and enhance its competitive position, deepening relationships with existing clients and broadening the scope and scale of its service offerings.”
TMX Group currently operates international markets and develops all-digital communities and analytic services that can handle the funding, growth and success of companies, traders and investors.
TMX Group’s diverse operations include the Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange, The Canadian Depository for Securities, Montréal Exchange, Canadian Derivatives Clearing Corporation, and Trayport which offer listing markets, trading markets, clearing facilities, depository services, technology solutions, data products as well as other services to the international financial ecosystem.
TMX Group is based in Toronto, Canada. The organization also maintains business offices across North America (Montréal, Calgary, Vancouver and New York), and in other major markets such as London and Singapore.