CIBC Mellon Global Securities Services Co. has agreed to acquire the unitholder recordkeeping and fund administration business of Felcom Data Services Inc. for $4.2 million, the companies said Thursday.

Toronto-based Felcom is a wholly owned subsidiary of Jovian Capital Corp.

The transaction, which is expected to close on or about October 23, involves the transfer of Felcom’s client contracts.

CIBC Mellon will offer employment to the majority of Felcom employees who currently support the recordkeeping and fund administration business.

“CIBC Mellon’s acquisition of these well-integrated services will provide our investment fund clients with a greater array of top-tier services and product offerings that can be bundled and customized to deliver enhanced productivity and ongoing growth,” says Thomas C. MacMillan, president and CEO, CIBC Mellon.

“We feel that CIBC Mellon is a perfect fit for our Felcom business,” adds Philip Armstrong, CEO of Jovian. “Their competitive offer, along with their reputation for service excellence, leading position in the Canadian marketplace and wide breadth of custody operations, provide the best benefits for Jovian, and for our Felcom staff and clients.”

Felcom has been providing recordkeeping and fund administration services to investment fund manufacturers since 2001. Felcom services a wide breadth of fund products for 17 individual customers with combined assets under administration of $3 billion, Jovian says.

“This is a win-win for Felcom and CIBC Mellon,” says Ronald Landry, president of Felcom. “Felcom’s existing clients will benefit from CIBC Mellon’s leading custody and other product offerings. In turn, CIBC Mellon’s clients will benefit from Felcom’s robust technology and the experience of our employees.”

IE