LONDON, UK: TEAM plc has conditionally agreed to acquire the entire issued and to be issued share capital of Concentric Group Limited.
Concentric is a Jersey based financial planning and investment consultancy business, delivering market-leading investment performance and analysis for high net worth individuals and institutional investors in Jersey and internationally.
An initial consideration of £1.7 million is payable in cash, plus further deferred consideration of up to £0.8 million in new shares in TEAM.
The acquisition is subject to approval by the Jersey Financial Services Commission. The cash consideration will be funded through a £2.65 million (gross) subscription from existing and new investors in TEAM.
Hannam & Partners is acting as financial adviser to the Company and Canaccord Genuity Limited is acting as nominated adviser and broker to the Company in relation to the Acquisition and Subscription.
Concentric Group is a successful Jersey-based investment consultancy business providing investment advice and analysis to over 430 retail, HNWI and institutional investors, with assets under advice (“AUA”) of £231 million (as at 31 December 2021).
In the 12 months to 31 December 2021, Concentric generated unaudited revenues of £1.0 million (FY20 audited: £0.8m) and adjusted EBITDA of £0.22 million, profit before tax of £0.1 million (FY20 audited: £0.1m) and had net assets of £0.5 million (FY20 audited: £0.5m).
On completion of the Acquisition, which is subject to regulatory approval, the directors currently expect TEAM to have assets under management and advice of approximately £550 million, with approximately £1.4 billion of cash under advice.
Matthew Moore, CFO of TEAM, commented: “Concentric is led by an experienced, ambitious team who have built a good business, growing the client base, services and staff, revenues and EBITDA in a challenging market. We are delighted they see the transaction as a stepping stone to achieve their own goals, by being part of a larger, wealth management business, with shared values and the ability to offer clients a broader range of investment advice services.
Core to Concentrics’s investment approach is to focus on modern quantitative and qualitative analysis, with an emphasis on impact, ESG and sustainable development goals investing. These are values shared with TEAM and a basis for significantly expanding Concentric’s customer base by targeting the aspirations of the upcoming generation of investors in Jersey, the UK and internationally.”
The Company has undertaken the Subscription to part fund the Acquisition at a subscription price of 60 pence (the “Subscription Price”). The Subscription Price represents a discount of 5.5 per cent to the closing mid-market price for an ordinary share of 63.5 pence (“Ordinary Share”) on 11 May 2022, being the last practicable date prior to this announcement.
The Subscription has been undertaken using the existing share authorities of the Company granted at the Company AGM in May 2021.
TEAM plc is building a new wealth, asset management and complementary financial services group. With a focus on the UK, Crown Dependencies and International Finance Centres, the strategy is to build local businesses of scale around TEAM plc’s core skill of providing investment management services.