LONDON: JTC Plc has announced the acquisition of the assets, contracts and employees of SANNE Group plc’s private client business based in Jersey. TC is an award-winning provider of fund, corporate and private client services.
The consideration is variable based on the satisfactory migration of clients to JTC and is capped at a maximum of £12 million, to be paid in cash upon completion. The consideration will be funded from the Group’s operating cash flows and existing facilities.
The SANNE private client business was established in 1988 and has a strong reputation for the expertise of its staff and quality of service delivery. As part of the transaction, all clients and staff will transfer to JTC.
The acquisition will expand JTC’s Private Client Services (PCS) presence in Jersey, one of its strongest performing PCS jurisdictions. SANNE’s staff will be accommodated in JTC’s global headquarters in Jersey. Due to the nature of the SANNE private client book and the single jurisdiction for transferring employees, JTC expects integration to be relatively swift, following the granting of relevant regulatory approvals.
The acquisition forms part of JTC’s ongoing growth strategy, with the Company continuing to see opportunities for organic and inorganic growth across both its Institutional Client Services (ICS) and Private Client Services (PCS) Divisions.
JTC anticipates that the transaction will result in the transfer of clients representing revenue of up to £5.3 million for the full year ended 31 December 2019. JTC expects the transaction to be immediately earnings enhancing with the acquired business performing at, or above, JTC’s Group-wide underlying EBITDA margin post completion and integration.
Nigel Le Quesne, CEO of JTC, said: “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. Our Jersey platform continues to deliver strong commercial performance, and we look forward to using our extensive acquisition experience to ensure a positive and seamless transition for both clients and new colleagues.
In these uncertain times we are focused on looking after our fantastic people. We have a great business which has consistently demonstrated excellent resilience and sustained growth throughout multiple economic cycles.”
Martin Schnaier, Chief Executive Officer at SANNE said about the transaction: “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. We believe our people and our clients will benefit from JTC’s experience and expertise in this sector. I wish all of our people every success as they enter a new chapter with JTC.”