Computershare Limited (ASX: CPU) has successfully completed the sale of its US Mortgage Services business (CLS US) to NYSE-listed Rithm Capital Corp.
Computershare received gross consideration at closing of US$712 million. Proceeds will be used to pay down existing debt and for general corporate purposes.
"The completion of the divestment of CLS US marks a significant milestone in Computershare’s simplification strategy and allows us to continue to focus our efforts on our core businesses," Stuart Irving, CEO and President, said.
“The proceeds from the sale will further enhance Computershare’s flexibility to pursue strategic investments and to consider further capital management opportunities.
“We thank the management and employees of the business for their hard work and wish them and Rithm the very best for their next chapter."
The impact to Computershare’s FY24 earnings for the remainder of the fiscal year from the completion of the sale is expected to be broadly neutral, with the reduction in interest expense from cash proceeds largely offsetting the anticipated positive EBIT contribution from CLS US.
Accordingly, Computershare reaffirms its FY24 guidance for management EPS to be around 116cps, in line with the market update we provided at our half year results on 13 February 2024.