10th Dec 2020 17:30
(Alliance News) -Â JTC PLC on Thursday said it is buying employee benefits platform CEES from RBC Holdings (Channel Islands) Ltd, part of RBC Wealth Management, for GBP20 million.
Around 180 employees, including the CEES senior management team, will join JTC at completion, becoming part of the Institutional Client Services division. The deal is expected to complete in the second quarter of 2021.
"The high quality CEES client book consists of over 430 corporate relationships and more than 890 plans, with assets under administration of about GBP11 billion. Client tenure is often in excess of 20 years due to the nature of solutions provided. The acquisition is complementary to JTC's existing corporate and trustee services and significantly enhances the Group's employee benefits offering," JTC said.
As part of the JTC group, it is expected that margins will "improve over time" to reach current company guidance levels. The acquisition will be immediately earnings enhancing, JTC added.
JTC Chief Executive Nigel Le Quesne said: "We can see that demand for employee ownership solutions is growing globally and as well as achieving enhanced financial performance over the medium term once integrated onto the JTC platform, we see medium and long-term opportunities for good organic growth."
Shares in FTSE 250 constituent JTC closed up 9.0% at 582.00 pence in London on Thursday.
By Lucy Heming;Â [email protected]
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