16th Mar 2020 09:55
(Alliance News) - Sanne Group PLC on Monday said it has agreed to sell its Jersey-based private client business to JTC PLC, a London-listed provider of fund, corporate and private client services.
The FTSE 250-listed trust and fund administration services provider said all clients and staff of its Jersey-based business will transfer to JTC. Completion of this transaction, subject to regulatory approvals, is anticipated to complete during 2020.
JTC said the acquisition will expand its Private Client Services presence in Jersey. For Sanne, the transaction will allow it to focus on its core global alternatives markets.
For 2019, Sanne expects its Jersey-based business to generate revenue of GBP5.7 million and gross profit of GBP3.7 million.
Sanne said it will receive a maximum of GBP12 million in cash upon completion. Proceeds from the sale will be used to reduce the company's leverage, it said, and, as a result, the transaction will have a small dilutive impact on Sanne's earnings.
Meanwhile, JTC said it will fund the acquisition from its operating cash flows and existing facilities. JTC expects the transaction to be immediately earnings enhancing, it said.
"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," said Chief Executive Martin Schnaier.
"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," added JTC CEO Nigel Le Quesne.
JTC is scheduled to announce its 2019 results on April 1.
By Evelina Grecenko; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
SNN.LJtc Plc