Acquisition of SANNE Group private client business
16 March 2020
JTC PLC
(the "Company" and together with its subsidiaries "JTC" or the "Group")
Acquisition of SANNE Group plc private client business ("SANNE private client business")
JTC, the award-winning provider of fund, corporate and private client services is pleased to announce the acquisition of the assets, contracts and employees of SANNE Group plc's private client business based in Jersey.
The SANNE private client business was established in 1988 and has a strong reputation for the expertise of its staff and quality of service delivery. As part of the transaction, all clients and staff will transfer to JTC.
The acquisition will expand JTC's Private Client Services ("PCS") presence in Jersey, one of its strongest performing PCS jurisdictions. SANNE's staff will be accommodated in JTC's global headquarters in Jersey. Due to the nature of the SANNE private client book and the single jurisdiction for transferring employees, JTC expects integration to be relatively swift, following the granting of relevant regulatory approvals.
The acquisition forms part of JTC's ongoing growth strategy, with the Company continuing to see opportunities for organic and inorganic growth across both its Institutional Client Services ("ICS") and Private Client Services ("PCS") Divisions.
The consideration is variable based on the satisfactory migration of clients to JTC and is capped at a maximum of £12m, to be paid in cash upon completion. The consideration will be funded from the Group's operating cash flows and existing facilities.
JTC anticipates that the transaction will result in the transfer of clients representing revenue of up to £5.3m for the full year ended 31 December 2019. JTC expects the transaction to be immediately earnings enhancing with the acquired business performing at, or above, JTC's Group-wide underlying EBITDA margin post completion and integration.
Nigel Le Quesne, CEO of JTC, said:
"We are delighted to welcome SANNE's private client team and clients to JTC. We have built a strong reputation for client service excellence, innovation and consistent growth. Our Jersey platform continues to deliver strong commercial performance, and we look forward to using our extensive acquisition experience to ensure a positive and seamless transition for both clients and new colleagues.
In these uncertain times we are focused on looking after our fantastic people. We have a great business which has consistently demonstrated excellent resilience and sustained growth throughout multiple economic cycles."
Martin Schnaier, Chief Executive Officer at SANNE said about the transaction:
"As SANNE continues to focus its global operations on the growing alternatives and corporate sector, we were keen to ensure we found a leading player in the market that shares the same passion for high quality client service as we do. We believe our people and our clients will benefit from JTC's experience and expertise in this sector. I wish all of our people every success as they enter a new chapter with JTC."
2019 Full Year Results
JTC will announce its full year results for the year ending 31 December 2019 on Wednesday 1 April 2020.
-ENDS-
Enquiries:
JTC PLC +44 (0) 1534 700 000
Nigel Le Quesne, Chief Executive Officer
Martin Fotheringham, Chief Financial Officer
David Vieira, Chief Communications Officer
Camarco +44 (0)20 3757 4985
Geoffrey Pelham-Lane
Kimberley Taylor
Monique Perks
About JTC
JTC is an award-winning provider of fund, corporate and private client services. Founded in 1987, the company employs c.750 people across its global office network and is trusted to administer assets of c.US$110 billion.
JTC is committed to its shared ownership culture and philosophy, with management and staff holding over 20% of the equity in the firm, clearly aligning the interests of clients, employees and other stakeholders.
Important Notices
The person arranging release of this announcement on behalf of JTC is David Vieira (Chief Communications Officer).
The release, publication or distribution of this announcement in jurisdictions other than the United Kingdom may be restricted by law and therefore any persons who are subject to the laws of any other jurisdiction should inform themselves about, and observe, any applicable requirements. This announcement has been prepared for the purposes of complying with the Listing Rules and MAR and the information disclosed may not be the same as that which would have been prepared in accordance with the laws and regulation of any jurisdiction outside of England.
This announcement contains forward looking statements. No forward-looking statement is a guarantee of future performance and actual results or performance or other financial condition could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact they do not relate only to historical or current facts. They may contain words such as " may " , " will " , " seek " , " continue " , " aim " , " anticipate " , " target " , " projected " , " expect " , " estimate " , " intend " , " plan " , " goal " , " believe " , " achieve " or other words with similar meaning. By their nature forward looking statements involve risk and uncertainty because they relate to future events and circumstances. A number of these influences and factors are outside of the Company ' s control. As a result, actual results may differ materially from the plans, goals and expectations contained in this announcement. Any forward-looking statements made in this announcement speak only as of the date they are made. Except as required by the FCA or any applicable law or regulation, the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement.
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