Butterfield gains with merger

(CNS): The Bank of NT Butterfield & Son Limited today announced that it has completed the merger of its Bermuda-based and international Fund Services businesses with those of Fulcrum Group to form the new company, Butterfield Fulcrum Group. The Bank will realise a gain of approximately $115 million on the transaction in the third quarter of the current financial year.

Butterfield Fulcrum Group has a significant presence in fund administration globally, ranking in the top ten among independent alternative asset fund administrators. It has approximately $100 billion in assets under administration from close to 1,000 funds, and 400 employees in ten locations across nine countries.

The strategic agreement to merge Butterfield Fund Services and Fulcrum Group was announced on 5 August 2008, subject to regulatory approvals in multiple jurisdictions. All required approvals have now been received and the transaction has been completed as planned.

Butterfield retains a substantial ownership interest in Butterfield Fulcrum Group, in excess of 40% (on a fully diluted basis). Alan Thompson, President and Chief Executive Officer, and Graham Brooks, Executive Vice President, International at Butterfield, will be Directors on the Butterfield Fulcrum Group Board.

Mr. Thompson said, “We are pleased that we were able to complete the strategic merger of Butterfield Fund Services with Fulcrum Group in such a timely manner. With our significant ownership stake, Butterfield Fulcrum Group provides the Bank with a platform for continued participation and growth in the field of international fund administration. In addition, this transaction allows us to unlock for shareholders the significant value that we have built up in Butterfield Fund Services over the years.”

Mr. Thompson added, “I would like to express my thanks to everyone at Butterfield and Fulcrum, along with our advisers, for the excellent work they’ve done in establishing Butterfield Fulcrum Group. The new company will offer customers enhanced services, improved technology and the benefits of added scale. With tremendous growth prospects, Butterfield Fulcrum Group also presents fund administration employees with expanded opportunities.”