Key Facts of Computershare's Announcement

Computershare Limited (ASX: $CPU) has successfully completed the sale of its US Mortgage Services business to Rithm Capital Corp (NYSE: RITM) for a gross consideration of US$712 million. The proceeds from the sale will be utilized for paying down existing debt and general corporate purposes. Stuart Irving, CEO and President, highlighted that the divestment marks a significant milestone in Computershare's simplification strategy, allowing the company to focus on its core businesses. The impact on Computershare's FY24 earnings 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. As a result, Computershare reaffirms its FY24 guidance for management EPS to be around 116cps, in line with the market update provided at the half-year results on 13 February 2024.

Executive Commentary on the Sale of CLS US

The completion of the divestment of CLS US is a significant achievement for Computershare, as it aligns with our strategic focus on core operations. The proceeds from the sale will provide us with the flexibility to pursue strategic investments and consider further capital management opportunities. We appreciate the dedication of the management and employees of the business and extend our best wishes to them and Rithm for their future endeavors.

Summary of Computershare's Announcement

Computershare (ASX: $CPU) has successfully completed the sale of its US Mortgage Services business to Rithm Capital Corp for a gross consideration of US$712 million. The proceeds from the sale will be used to pay down existing debt and for general corporate purposes. The completion of the divestment marks a significant milestone in Computershare's simplification strategy, allowing the company to focus on its core businesses. The impact on Computershare's FY24 earnings 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. As a result, Computershare reaffirms its FY24 guidance for management EPS to be around 116cps, in line with the market update provided at the half-year results on 13 February 2024. The company expresses gratitude to the management and employees of the business and extends best wishes to them and Rithm for their future endeavors.