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Remaining stake in custody and fund administration provider to be bought for C$1.1 billion in cash.

Royal Bank of Canada (RBC) has reached an agreement to acquire the remaining 50 percent stake from Banque Internationale a Luxembourg S.a. (BIL) of its joint venture in RBC Dexia Investor Services, a provider of global custody, pension administration, shareholder and treasury services to institutional investors. The deal, which still requires closing and regulatory approvals, will see BIL receive C$1.1 billion in cash.

"The transaction has significant strategic value to us, not only as a standalone business but also in its complementary capabilities to RBC. It is a strong business that generates stable revenue in an attractive sector that is well positioned for long-term growth. [Dexia] has a premier list of institutional investor clients globally and fits well with our diversification strategy," says Gordon Nixon, president and CEO of RBC.

RBC also says it sees potential growth for custody services as the markets grow stronger over coming years. "This is a very scalable business with leading infrastructure and processes already in place. It is well positioned to benefit from higher interest rates and an improvement in market asset values," says Jim Westlake, Group Head, International Banking and Insurance, RBC.

 

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Winner's Announced: Sell-Side Technology Awards 2014

View the winners...

The winners of the 2nd annual Sell-Side Technology Awards 2014 were announced in New York on April 15. These awards recognize the leading technologies and third-party vendors in their area of expertise, through an auditable and transparent methodology. To view the winners across the 24 categories click here.

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