Australian share registry company Computershare is continuing its global expansion, yesterday announcing it would buy German-based Pepper Technologies.
In its second announcement of international acquisitions in as many days, Computershare will spend about $18.5 million to buy out Pepper, which has offices in Europe, North America and Asia. The company analyses data to provide clients with information about stakeholder groups, including shareholders.
The deal comes after last year's $180 million purchase of US firm Georgeson Communications, which preceded a $25 million, five-year deal with a British company and Monday's revelation that Computershare would spend $10 million to acquire a half-share of Indian share registry company Karvy Consultants.
Chief executive Chris Morris said Computershare's existing business would be complemented by the purchase of Pepper, which has clients including AMP, Rio Tinto, BP and Hewlett-Packard.
In a statement to the Australian Stock Exchange, Computershare said Pepper's 2003 revenue was $14.6 million and was expected to climb to $22.7 million this year.
In an analysis of the deal, Macquarie Equities said the financial impact was likely to be small and would generate "perhaps $2.5 million to $3.5 million" in net profit.
"The acquisition adds capability for Computershare in relation to the higher-margin consulting services and provides a natural cross-sell opportunity," Macquarie's analysis said. "It also adds to Computershare's credentials in attracting new registry accounts reflecting the broader range of value-added products and opportunities for bundling."
Last night, Computershare stock closed at $3.08, 7¢ lower. However, the share price is up 117 per cent off a $1.42 low reached in April.