15th Feb 2021 08:39
(Alliance News) - JTC PLC on Monday said it has acquired fund oversight provider Indos Financial Ltd for GBP12.5 million.
The FTSE 250-listed professional services firm stated the acquisition of Indos adds complementary capabilities and technical expertise to the company's own fund services offering, adding that the purchase will create "exciting" growth opportunities both on a standalone basis as well as for its Institutional Client Services business.
JTC also noted Indos directly adds scale in Ireland and the UK as well as expands the group's Cayman offering through the provision of AML oversight services.
The total purchase price comprises an initial consideration of GBP11 million - which will be settled in GBP10 million of cash and GBP1 million in shares - and a further deferred GBP1.5 million dependent on the achievement of performance targets.
For 2020, Indos delivered revenue of GBP3.7 million and revenue CAGR of over 20% for the three-year period ending December 2020.
JTC said by leveraging its scale, it expects Indos to achieve margins in line with management guidance of 33% to 38% underlying earnings before interest, taxes, depreciation, and amortization in the medium-term.
"Indos is a business of real quality which operates in a strategically important part of the fund services market. We offer a warm welcome to our new colleagues and are excited to bring the benefits of the acquisition to existing JTC clients and to providing Indos clients with an even richer suite of global services and the full backing of the JTC Group," said Chief Executive Nigel Le Quesne.
Shares in JTC were trading 0.2% higher at 643.15 pence each on Monday morning in London.
By Ife Taiwo; [email protected]
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