TEAM acquires international wealth management firm Globaleye for £4.8 million

TEAM acquires international wealth management firm Globaleye for £4.8 million

LONDON, UK: TEAM plc (AIM: TEAM), the wealth, asset management and complementary financial services group, has acquired the entire issued share capital of Globaleye BVI, the parent company of the Globaleye Wealth Management Group (“Globaleye”) for £4.8 million ($6 million).

Globaleye is an international wealth management business, headquartered in Dubai, with five further offices and total client assets under advice of £242 million ($300 million).

The deal, announced on Monday, comprises 6,208,667 new ordinary shares of nil par value in TEAM and the issue of a convertible loan note of £2,445,296, which is convertible into 5,964,138 new ordinary shares in TEAM. The convertible loan note is exercisable at the option of the Globaleye vendors, subject to certain conditions.

Additional consideration will be payable by TEAM if Globaleye’s net assets are in excess of £1.0 million ($1.2 million) on completion. Deferred consideration of up to £0.8 million ($1.0 million) is payable by TEAM dependent upon Globaleye hitting a profit target for the year ended 31 December 2023, and other operational tests.

Globaleye was founded in 1996 by its Chairman, Tim Searle, and specialises in wealth management, insurance broking and complementary financial services, providing advice to affluent, high and ultra-high net worth private individuals, trustees, corporates and business owners.

Globaleye has 68 employees and further offices in Abu Dhabi, Singapore, Durban (South Africa), and Kuala Lumpur (Malaysia). It is regulated by the Central Bank and the Securities and Commodities Authority in the UAE, and by the relevant local regulators in the other countries.

Globaleye has consistently looked to expand its range of services with the acquisition of a Dubai-based wealth management business in 2022 and successfully launching a network proposition for third party advisers, leveraging its licences and well-resourced infrastructure.

More recently, Globaleye launched an innovative in-house investment service and a digital wealth platform, the first of its kind in the UAE.

In the year ended 31 December 2022, Globaleye generated unaudited revenues of £8 million ($10 million), profit before and after tax of £0.11 million ($0.14 million) and as at 31 December 2022, had net assets of £1.0 million ($1.2 million).

The acquisition is expected to be immediately earnings enhancing upon completion and will further contribute to TEAM’s ability to reach cash-flow break even. The consideration represents an estimated P/E multiple of 10x on 2023 profits, before revenue and cost synergies.

TEAM said the acquisition would strengthen its presence in high growth markets such as Dubai, Singapore and Abu Dhabi, where there is a high demand for long term savings, insurance and other financial services from the international expatriate community.

TEAM also said it would seek to transition a proportion of Globaleye’s existing clients to TEAM’s investment management products, alongside extending to them the full range of services offered to TEAM’s existing clients.

TEAM’s CFO and COO, Matthew Moore, commented:

“The acquisitions of Globaleye and Thornton takes TEAM closer to £1 billion under management and advice in our target markets and extends our global footprint to seven countries. In doing so, we believe we are carving out a valuable section of the high net worth market who are living outside of their mainland home tax jurisdiction and are in need of specialist financial advice, which in the past has not been easily accessible. TEAM is filling that space and we see significant scope to expand further.”

Globaleye’s Chairman and Founder, Tim Searle, said: “We are delighted to announce that Globaleye Wealth Management will be partnering with TEAM to provide an enhanced product offering to its clients. There is a compelling strategic rationale for joining forces and the companies are a strong cultural fit, both with an entrepreneurial and performance-driven culture. Our clients will be able to benefit from TEAM’s highly successful multi-asset portfolio management, bespoke portfolio and cash and treasury management services. For our valued team at Globaleye Wealth Management, there will be an opportunity to work within a collegiate and client focused culture and to take advantage of TEAM’s complementary management and support services. I look forward to joining TEAM as a substantial and supportive shareholder.”

TEAM’s Executive Chairman, Mark Clubb, highlighted: “In May of last year, we stated our ambition to grow internationally within the other Crown Dependencies as well as further afield including in the Middle East and Asia. Our multi-asset strategies have delivered robust returns in challenging markets and this acquisition represents a major opportunity to transition Globaleye clients from third-party managers to the TEAM Asset Management model portfolios and bespoke portfolio services. There will be cash and treasury management opportunities for Globaleye clients which will drive benefits of scale and improve client yields and revenues.

I look forward to welcoming Tim Searle and Patrick Liotard-Vogt of Globaleye who will become substantial shareholders of TEAM. As a Group, we continue to have an ambitious roll-out strategy which requires ongoing support from current and future shareholders – I shall continue to provide my support as a shareholder. Overall, I believe these recent acquisitions are transformational, opening up a much larger stage for TEAM.”

TEAM plc is a wealth, asset management and complementary financial services group, headquartered in Jersey, with offices in London, Guernsey, Isle of Man and Geneva. The company offers a range of services, such as multi-asset portfolio management, bespoke portfolio management, cash and treasury management, financial planning, corporate finance and trust administration. The company was founded in 2017 by Mark Clubb and is listed on the AIM market of the London Stock Exchange.

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