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February 16, 2021

JTC brokers deal to buy alternative fund services expert INDOS Financial

By Johney Amala

Fund administrator JTC has signed a deal worth up to £12.5m to snap up alternative fund specialist INDOS Financial.

The initial consideration for the deal is £11m, which will be paid in £10m cash and £1m worth JTC equity. The remaining £1.5m will depend on the accomplishment of performance targets.

The deal awaits the FCA’s nod and is expected to close by the end of next month.

Founded in 2012, INDOS has $35bn client assets under depositary oversight as of December 2020. The company has more than 50 employees at its three offices located in Ireland and the UK.

As part of the deal, JTC will absorb all INDOS staff including its founder and CEO Bill Prew and senior management team.

They will join JTC’s Institutional Client Services (ICS) division and become shared owners in the business.

Deal Rationale

The deal strengthens JTC’s fund services offering by adding complementary capabilities and technical expertise, stated the fund administrator.

It is expected to provide growth opportunities on a standalone basis and for the broader ICS business, allowing JTC to serve its global clients more efficiently.

Moreover, the addition of INDOS bolsters the company’s business in Ireland and the UK and expands its Cayman offering through the provision of AML oversight services.

Comments

JTC CEO Nigel Quesne said: “INDOS is a business of real quality which operates in a strategically important part of the fund services market. Having collaborated with Bill and the team several times, it is clear that their deep expertise, commitment to service excellence and proven ability to innovate and grow makes INDOS a great addition to the JTC platform.

“The transaction also adds further scale in Ireland, a priority market for the Group, and the UK, where our London team has more than doubled in size over the last 18 months due to client demand.”

Prew said: “We share much of our cultural DNA with JTC and their focus on clients, innovation and technology mean that we are very excited about our future as part of the Group. I am also delighted that all members of the INDOS team will become shared owners of JTC.”

Other JTC acquisitions

The latest deal continues JTC’s acquisition spree.

In April last year, the firm inked an agreement to buy US-based technology-enabled peer NES Financial (NESF).

Last March, JTC agreed to acquire the private client services business of Sanne.

Earlier, it acquired Luxembourg-based corporate and related fiduciary services provider Exequtive Partners, as well as Jersey-based private client, corporate, fund and treasury services provider Minerva, among others.

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