Member Article

Skipton Building Society sells mortgage servicing arm for £47.5 million

Skipton Building Society has agreed to sell 100% of the issued share capital of its mortgage servicing business Homeloan Management Limited to Bristol-based Computershare Limited.

Skipton will receive an initial consideration of £47.5 million, plus an adjustment for surplus working capital, together with potential additional payments based on revenue growth in 2015 and 2016.

Computershare Ltd, is a UK subsidiary of the ASX listed global market leader in transfer agency and share registration, employee equity plans, proxy solicitation and stakeholder communications.

Computershare is already an established player in the USA mortgage servicing market, having acquired Specialized Loan Servicing in 2011.

A statement released by the building society said: “For HML, it marks the start of a new era which will enable it to better capitalise on the market opportunities which are clearly developing.

“For Skipton, it enables it to further focus on growing its core business of mortgages and savings, and investing in the products and services provided to its members. Skipton will shortly announce its Interim Results for the six months ended 30 June 2014.”

Skipton Group chief executive David Cutter said: “HML has been a major success story for Skipton of which we are very proud. However, we anticipate major growth opportunities arising in the mortgage outsourcing market which are best seized by the investment from a large multinational company.

“We believe Computershare will be an ideal new owner for HML and I wish all staff at HML the very best for the future.”

HML’s head office will remain in Skipton and continue to be led by Andrew Jones.

Andrew Jones, chief executive officer at HML, said: “I am delighted that HML and Computershare will be working together, and Computershare becoming our parent company is excellent news for the business and those who work at HML.

“Computershare is committed to investing in and growing HML, allowing us to continue to be the leading third-party mortgage administration company in the UK and Ireland. With the desire to grow the business and develop the specialist expertise that HML has, it’s clear to me that culturally we are much aligned with Computershare.

“HML has had 25 years of successfully delivering value to clients, customers, our people and Skipton Building Society, and this deal will secure the future of the company for many more years to come.”

Skipton was advised by Deloitte LLP. The sale is subject to FCA approval.

This was posted in Bdaily's Members' News section by Clare Burnett .