UBS Agrees to Sell Correspondent Services Corporation to Fidelity
UBS announced today that it has signed a definitive agreement to sell Correspondent Services Corporation ("CSC"), a division of UBS PaineWebber, to Fidelity Investments for an undisclosed price. A member of the New York Stock Exchange, CSC focuses on providing clearance, execution, settlement, administrative and management information services to brokerage clients and others within the financial services industry.
We are pleased to announce the sale of CSC to Fidelity, said Joseph J. Grano, Jr., chairman and chief executive officer, UBS PaineWebber. This transaction reinforces UBS PaineWebber's focus on our primary business -- providing wealth management services to affluent individual investors. We believe CSC represents an attractive opportunity for Fidelity to add more than 150 clients to its significant correspondent clearing business. Increasingly, this business requires scale, and this transaction enables Fidelity to accelerate the growth of its core clearing business."
This acquisition fits strategically with Fidelity and should benefit the correspondent clearing clients of both companies," said Robert L. Reynolds, Fidelity vice chairman and chief operating officer. We are committed to this business and believe this combination will help ensure our ability to continue to provide clients with the technology, products and service they require to further strengthen and grow their businesses."
The transaction is expected to close during the second quarter of 2003. Upon closing of the transaction, UBS expects a net post-tax result from the transaction near breakeven after the deduction of taxes of approximately $120 million, the amortization of goodwill associated with CSC, and other transaction-related costs. UBS PaineWebber has agreed to provide certain services to clients of the acquired business during the next year to ensure an orderly transition.
UBS is a leading global financial services firm with 69,000 employees worldwide, providing a wide range of services to a client base that includes affluent individuals, corporations, institutions and governments. Headquartered in Zurich and Basel, the bank has significant operations in all of the world's major financial centers and is comprised of four business groups: UBS Wealth Management & Business Banking, UBS Global Asset Management, UBS Warburg, and UBS PaineWebber.
UBS PaineWebber serves the wealth management needs of more than 2 million clients with more than 8,800 financial advisors in 365 branch offices nationwide.
Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $1.4 trillion, including managed assets of $759.6 billion as of January 31, 2003. Fidelity offers investment management, retirement planning, brokerage, human resources and benefits outsourcing services to 18 million individuals and institutions as well as through 5,500 financial intermediaries. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, one of the largest mutual fund supermarkets and a leading online brokerage firm.
New York, 8 April 2003