(CPU UNCH): The registry and corporate administration business has agreed to pay $US750m for US listed Wells Fargo (WFC US) Corporate Trust Services (CTS) business. The purchase will see CPU take a top 4 position in the North American corporate services market, adding over 26,000 mandates to their already significant exposure. The deal put its on nearly 9x trailing EV/EBITDA, but is expected to be 15% EPS accretive post synergies. The company launched a $A835m 1 for 8.8 renounceable entitlement offer to fund the deal with new shares offered at $13.55, a 9.6% discount to last. Large, but smart deal for CPU, adding significant market share and expertise in a key market
We like the deal, CPU looks interesting into a pull back
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