17th Aug 2018 09:11
LONDON (Alliance News) - JTC PLC on Friday said it agreed to buy corporate & fiduciary services provider Van Doorn CFS BV from International Capital Group BV.
The private wealth services provider said the consideration for the acquisition if made up of an initial element and an earn-out element.
The initial consideration payment is expected to be EUR16 million, which will be 69% in cash and 31% in new JTC shares. The cash portion will be funded through JTC's operating cash flows and existing facilities, it said.
The earn-out will be paid in cash during 2019 and is based on Van Doorn's performance in 2018.
The total consideration payable is subject to an absolute cap of EUR21.5 million.
JTC expects the transaction to be immediately earnings enhancing and to complete in or around October.
Van Doorn is based in Amsterdam, the Netherlands, and has 16 employees. It recorded earnings before interest, taxation, depreciation and amortisation of EUR1.2 million in 2017 and is expected to have normalised Ebitda of EUR2.4 million in 2018.
JTC plans to combine Van Doorn with its institutional client services team, based in the same region to broaden its services and create greater opportunities for future growth.
"Van Doorn is a high-quality, fast-growing business that is an ideal bolt-on to our institutional client services division and which strengthens and enlarges our Netherlands platform," said JTC Chief Executive Nigel Le Quesne.
"The management team has built a successful business based on very similar principles to JTC and this deal allows Van Doorn to become part of a larger, established global network, while retaining its focus on sophisticated solutions and client service excellence," added Le Quesne.
Shares in JTC were trading 3.5% lower on Friday at 361.00 pence each.
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