Skipton Building Society has announced the sale of Homeloan Management Limited (HML), its mortgage servicing subsidiary.
Contracts have been exchanged with Computershare Limited, and completion is conditional upon regulatory approval.
In exchange for the sale of its 100% shareholding, Skipton will receive an initial consideration of £47.5m, plus an adjustment for surplus working capital, together with potential additional payments based on revenue growth in 2015 and 2016. The initial consideration will generate a profit in the order of £26m to be recognised in Skipton’s results in the second half of this year.
This follows a 26 year period in which Skipton established and grew HML to become one of Europe’s leading third party mortgage administrators. Computershare is already an established player in the USA mortgage servicing market, having acquired Specialized Loan Servicing in 2011.
David Cutter, Skipton Group chief executive, 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, CEO at HML.
Jones 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.”