PNC Bank Completes Acquisition of First Data Investor Services Group; Positions PFPC as a Premier Investment Services Provider
PITTSBURGH, Dec. 2 /PRNewswire/ -- PNC Bank Corp. (NYSE: PNC) today announced it has completed the acquisition of First Data Investor Services Group (ISG), one of the nation's leading providers of services to mutual funds and retirement plans. ISG will be integrated with PFPC, PNC's global fund services subsidiary. The addition of ISG makes PFPC the nation's largest full-service mutual fund transfer agent, while strengthening PFPC's position as the second largest full-service provider of mutual fund accounting services. The acquisition also adds key related businesses, including retirement plan servicing and distribution services, to PFPC's expanding operations. The combined organization provides fund accounting services for $346 billion of global fund assets and transfer agency services for 33 million shareholder accounts. PFPC provides a full-service solution to more than 5,000 retirement plans with more than 700,000 participants and technology solutions to an additional 15,000 retirement plans with more than two million participants. The acquisition is expected to increase the relative revenue contribution of PNC's fee-based businesses to approximately 60 percent in 2000 on a pro forma basis. The transaction -- valued at $1.1 billion -- will be accounted for as a purchase and is expected to be less than 1 percent dilutive to GAAP earnings per share in the first year and accretive thereafter. On a cash basis, the transaction is expected to be substantially accretive to earnings per share immediately. "By combining the strengths of these two organizations, PFPC will become a clear best-of-class service provider in an extremely attractive industry," said Thomas H. O'Brien, chairman and chief executive officer of PNC Bank Corp. "This acquisition reflects PNC's unrelenting focus on creating a superior value proposition for customers in each of our businesses." "The addition of ISG represents a significant competitive advantage for PFPC to continue to build on a 25 year history of leadership and innovation in this industry," said J. Richard Carnall, chairman and chief executive officer of PFPC. "Very significantly, this solidifies PFPC's position as a technology leader, and, through our 5,000 dedicated employees, allows PFPC to bring a virtually unparalleled array of services to our customers." PFPC is one of the world's leading providers of technology-driven services including fund accounting, administration, distribution services, transfer agency, shareholder services, custody, securities lending, retirement plan services, integrated banking transaction services, hedge fund services, offshore fund services and subaccounting services. PFPC International Ltd., based in Dublin, Ireland, provides services and technological solutions to the international funds community. PNC Bank Corp. is one of the largest diversified financial services organizations in the United States. Its major businesses include PNC Regional Bank, PNC Institutional Bank, PNC Advisors, PNC Mortgage, PNC Secured Finance, PFPC and BlackRock, Inc. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the anticipated effect of the acquisition of ISG. Forward-looking statements are typically identified by words such as "believe" or "expect", or future or conditional verbs such as "will" or similar expressions. These forward- looking statements are subject to numerous assumptions, risks and uncertainties, all of which change over time. PNC Bank assumes no duty to update forward-looking statements. The following factors, among others, could cause actual results to differ materially from PNC's expectations: extent of customer retention and generation; ability to timely and fully realize contemplated cost savings and revenues; ability to attract and retain management; factors related to Year 2000 remediation efforts and the Year 2000 compliance of other parties; technological changes; changes in economic conditions, interest rates, and financial and capital markets; competition; and changes in legislation or regulatory requirements. Our SEC reports, accessible on our website, identify additional factors that can affect forward-looking statements. Visit PNC Bank on the World Wide Web at http://www.pncbank.comRELATED LINKS
SOURCE PNC Bank Corp.