BNY Mellon is offloading its local execution and settlements business to FinClear for an undisclosed amount.
FinClear is set to takeover Pershing Securities Australia in a bid to scale and enhance Holder Identification Number (HIN)-based platform services.
FinClear said it is too early in the process to comment on how staff members will be impacted by the acquisition.
As the integration progresses there will be more clarity on the shape of the combined business, it said, adding that the expansion will create opportunities for career development.
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FinClear chief executive David Ferrall said FinClear's capital position following the acquisition is strong, supported by the $20 million raised from the Magellan Financial Group when it joined the share register as a strategic investor last October.
"We have the capital, the systems, technology and the expertise to integrate Pershing Australia clients into FinClear's operations - a process that will be managed in a staged, incremental, highly secure manner over an appropriate period of time," he said.
The acquisition will enable FinClear to expand its services to larger stockbrokers.
FinClear provides trades, clearing and settlement services, as well as technology solutions to wholesale intermediaries seeking access to the ASX.
"As an existing client of FinClear we are familiar with Pershing Australia and enjoy a strong relationship. We are confident that combining Pershing Australia with our vertically integrated service and technology capability will provide Pershing Australia's clients with an enhanced service offering and provide a platform for future growth," Ferrall said.
FinClear intends to fund the purchase via a share purchase agreement, subject to customary conditions. It is expected to finalise the transaction by the end of 2021.