The Boston-based mutual fund giant first announced the agreement to buy CSC back in April 2003. UBS expects a net post-tax result from the transaction near breakeven after the deduction of taxes of roughly $120 million, the amortization of goodwill associated with CSC, and other transaction-related costs. Additional financial terms of the deal were not disclosed.
Fidelity said its correspondent clearing business, National Financial, plans to begin the transition of CSC's client base to its brokerage platform later this year. CSC senior executives James MacGilvray, Michael Dura and Robert Basso, along with all its associates have joined National Financial, the company said.
"The clearing industry is undergoing significant and rapid consolidation," said National Financial President Norman R. Malo in a prepared statement. "This acquisition underscores Fidelity's long-term commitment to the clearing business, and we are confident that by integrating National Financial's and CSC's technology, products and services we will enhance an already strong offering," Malo said.
As result of the deal, National Financial will provide services for approximately 300 correspondent broker/dealer clients, and represent more than 3.3 million customer accounts, with an average daily trading volume of 158,000 shares and $277 billion in custodied assets.
