TMXXF - TMX Group inks agreement to acquire AST Investor Services and its subsidiary

TMX Group (TMXXF) enters into an agreement to acquire AST Investor Services and its subsidiary AST Trust Company for $165M.AST Investor Services and its subsidiary provides transfer agency services, equity plan solutions, corporate trust, structured finance and proxy related services.AST Trust Company LTM revenue through June 30, 2020 was $46.5M (including $8.0M of margin income) and adj. EBITDA was $11.6M, excluding indirect corporate allocations from the parent company.The transaction is expected to have a positive impact on TMX Group's adj. EPS (excl. amortization of acquired intangibles and integration costs) in the first full year of ownership, before expected synergies.TMXXF expect to realize combined revenue and technology cost synergies of ~$8.0M over the first two years, following acquisition.The transaction is expected to be financed with a combination of cash and debt and expected to close within 6 to 12 months.

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TMX Group inks agreement to acquire AST Investor Services and its subsidiary