LONDON, UK: MJ Hudson Group plc has acquired the entire share capital of Saffery Champness Fund Services Limited (SCFS), a Guernsey based fund administration business, from the accountancy group Saffery Champness.
The acquisition is expected to double MJ Hudson´s fund administration revenues in Guernsey with a 50% increase in local staff numbers. Completion of the transaction remains subject to approval by the Guernsey Financial Services Commission and is expected to be modestly accretive to earnings per share.
Founded in 2007, SCFS´ core services include fund administration and fund accounting as well as valuation and corporate secretarial work. Based in the UK and Northern Europe, SCFS´ largely alternative asset clients have a combined AUM of £418m.
A total of seven staff members will transfer to MJ Hudson as part of the transaction. In addition, MJ Hudson is hiring selectively to support its growth. On consolidation, the business will be managed by MJ Hudson´s local management team within its Outsourcing division. The acquisition adds strength in depth to the Group´s Guernsey operations as well as additional expertise in fund systems.
SCFS and its clients will benefit from the support of a dedicated funds group with an alternative asset focus.
The maximum consideration for SCFS is £2.8m in cash and is subject to performance criteria over a two-year period. The acquired business generated revenues of £1.4m for the twelve-month period to March 2021 with an EBITDA margin comparable with the Group´s Outsourcing division on a pro forma basis.
MJ Hudson expects to publish a trading update for the twelve months to June 2021 in early August.
Mark Pattimore, Managing Director of International Administration at MJ Hudson said: “We are pleased to welcome the SCFS team and its clients to MJ Hudson. This acquisition adds scale and expertise to our existing Guernsey operation. Our dedicated funds infrastructure and alternatives expertise will benefit SCFS´ many fund clients. We look forward to supporting the team as it pursues an extended new business pipeline as part of the Group”.
MJ Hudson Group PLC share price
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22 Jul, 4:30 pm GMT+1 ·Disclaimer