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Equiniti acquirer Siris warns of possible layoffs

By Reuters

– British payments specialist Equiniti, which is being bought by New York-based company Siris Capital, could face some job cuts once the deal is closed, the private equity firm said late on Monday.

Siris, which agreed to a roughly $917 million deal to buy the British company earlier this year, plans to integrate Equiniti with U.S.-based firm AST, which it is also buying.

“It is possible that such integration could result in headcount reductions which are not expected to exceed approximately 10% of the enlarged workforce,” Siris said in a statement.

Equiniti and AST employ about 5,750 people in total, Siris said.

Siris’ purchase of Equiniti is among a raft of deals to buy British companies this year, reflecting private equity’s appetite for cash-generating UK assets. However, these moves have created fears of job losses and prompted some suitors to provide assurances.

U.S.-based CD&R won a $10 billion auction to buy British supermarket Morrisons this month. The private equity firm has committed to retaining Morrisons’ headquarters, its existing management team and maintain staff pay rates.