Delaware-based Corporation Service Company and Netherlands-based Intertrust N.V. announced that a preliminary agreement calling for CSC to acquire the company in a cash deal valued at nearly $2 billion.
According to a release, the combination of CSC and Intertrust creates a leader in corporate, fund, private, and capital markets clients on an international scale.
Intertrust has an office in north Wilmington. CSC is based west of Wilmington.
The offer for the publicly-traded company represents a premium of approximately 59%based on the stock price. The board of Intertrust approved the deal.
Privately held CSC said it has financing in place for the transaction that will use cash and debt.
CSC agreed to keep the Dutch company’s headquarters in Amsterdam for at least two years.
The deal is subject to regulatory approval.
A first draft of the offer memorandum will be submitted to the AFM no later than February 2022 with completion of the offer anticipated in the second half of 2022
Rodman Ward III, CEO of CSC: “We have been following Intertrust’s growth and transformation for many years, while at the same time building and growing our trust and corporate services offering in the United States, scaling our fund administration and international expansion solutions globally, and providing a service model to our clients to enable them to navigate an increasingly complex international regulatory environment. We are happy to submit an offer to Intertrust and feel we present a unique opportunity unmatched in the market due to our business model, our people, our industry-leading and award-winning customer service, stability, continuity, and our passion for the complex.”
“Ward continued, “CSC believes that by combining its global corporate offering with Intertrust, it will establish itself as the differentiated leader for corporate, fund, private, and capital markets clients at a time that the market needs it most. By combining the strengths of the two businesses, CSC believes it will become the preferred partner to help companies manage their needs with a full suite of core and specialized services provided by industry experts and supported by a single-source technology platform.”
CSC does not release financial information but has estimated revenue of $500 million or more. Intertrust has about 2,500 employees with annual revenue of $665.6 million.
CSC got its start in providing services to companies incorporated in Delaware. It has since expanded into a worldwide company and operates a trust company.