NEW YORK – BNY Mellon has signed a definitive agreement to acquire Pinnacle Arbitrage Compliance, one of the largest independent U.S. firms devoted exclusively to arbitrage compliance services for tax-exempt bond issues and conduit borrowers.
Terms of the agreement, expected to close by the end of 2009, were not disclosed.
Dallas-base Pinnacle is a privately held company that handles the wide variety of requirements associated with arbitrage regulation.
“The acquisition of Pinnacle will significantly enhance the comprehensive range of services and transparency tools we offer to the public finance market in the United States,” said Scott Posner, chief executive officer of BNY Mellon Corporate Trust. “With this acquisition, we will incorporate arbitrage compliance services into our offerings, providing issuers with seamless rebate reporting and information to help maximize investment returns on bond funds. It will help further differentiate BNY Mellon from other corporate trust providers and extend our leadership position in the municipal finance sector.”
“By joining BNY Mellon Corporate Trust, we will be able to integrate the established compliance services provided by our highly experienced staff with a broad array of trust services already recognized in the marketplace for innovation,” said Terence Burke, Pinnacle president and chief executive officer, who will continue to oversee this business following the close of the transaction. “Their well-established distribution channels will help increase awareness of our different methodologies to approaching arbitrage regulations, which often reduce or eliminate a client’s arbitrage liability. We believe clients will benefit from a wider portfolio of easily accessible compliance services designed to simplify their entire arbitrage compliance process.”
