Royal Trust Global Securities Services has entered an agreement to acquire Perpetual Fund Services, the custody, investment administration and unit registry business of Australia’s Perpetual Trustees Australia Ltd.

Perpetual Fund Services, with client assets under administration of $61 billion, is one of Australia’s largest providers of outsourced back-office administration to fund managers. The deal is worth $30 million (including $7.3-million of net assets), subject to adjustments.

The deal is expected to close July 31, subject to certain conditions, including approval by Canadian regulators. Royal Trust will be offering positions to all PFS employees. The transaction is expected to have a positive effect on Royal Bank’s net income in the second year after closing.

The acquisition is part of a growing global shift toward the outsourcing of securities administration. This trend is being driven by increasing globalization and the need for major investments in business technology to provide more efficient service. “The PFS client base and service proposition provide an excellent fit with Royal Trust’s global strategy,” said Jose Placido, senior vice-president, Royal Trust Global Securities Services. The acquisition positions Royal Trust to expand its service offerings in Australia and throughout the Asia-Pacific region.”

Graham Bradley, managing director of Perpetual, said the continuing rationalization of the global custody market makes it apparent that future profitability is becoming dependent on economies of scale.