Wells Fargo Securities head John Shrewsberry said Merlin’s capabilities fill an important niche in Wells Fargo Securities’ product set and connect many activities where the company already has expertise, including technology, custody, clearing, collateral management and execution.
"This is a logical extension of our offering to the investment industry, which is increasingly focused on tools to enhance risk management and improve capital efficiency. In addition, it provides new cross-sell opportunities for existing customers of both Wells Fargo and Merlin," Shrewsberry added.
"This transaction enhances our ability to meet customer needs and generate earnings for our shareholders; all while adhering to our disciplines of prudent risk management and controlled growth."
As per the agreement, the team members of Merlin will be absorbed by Wells Fargo Securities and both Fargo Securities will work closely with existing clients to continue to provide uninterrupted service and focus on clients’ ongoing needs.
The transaction, which is subject to concerned regulatory approval and other customary closing conditions, is expected to close in the third quarter of 2012.
Greenhill & Co acted as financial advisor to Merlin while Arnold & Porter and Morgan Lewis have served as counsel to Merlin and Wells Fargo respectively.
Merlin provides a suite of combined solutions with its MerlinPrime and MerlinSHARP products offers open architecture technology, custody and clearing services, operational support, and securities trading clients in the asset management industry.
