22nd Apr 2024 09:58
(Alliance News) - JTC PLC on Monday announced its proposed acquisition of First Republic Trust Company of Delaware LLC.
The Jersey-based professional services firm hopes to acquire the trust administration service provider from its parent company, JPMorgan Chase Bank NA, for a total consideration of USD21.0 million.
JTC believes the purchase of First Republic will add scale to the company's personal trust operations and facilitate faster growth in the "highly valuable" US market.
In 2023, First Republic generated revenue of GBP8.2 million, compared to JTC's GBP257.4 million, producing a net income of GBP3.6 million.
First Republic is expected to compliment the recent acquisitions of US trust companies, TC3 Group Holdings LLC and New York Private Trust Company, made by JTC over the last two years.
The transaction remains subject to regulatory approval and satisfaction of other customary closing conditions.
JTC shares were up 1.6% to 842.00 pence each in London on Monday morning.
In early May last year, JPMorgan took over First Republic, reopening its 84 branches in the US state of California under the JPMorgan umbrella.
This was after California regulators had seized the troubled bank and US financial authorities reached out to several financial institutions asking them to make bids on First Republic's assets.
San Francisco-based First Republic had been under heavy pressure after the bankruptcies in early March of fellow regional banks Silicon Valley Bank and Signature Bank sparked fears of contagion. But it had failed to come up with a workable rescue plan and the US federal government finally had to step in.
By Elijah Dale, Alliance News reporter
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