Jersey-based fund and private wealth services provider JTC has acquired Exequtive Partners (EP), a Luxembourg-based provider of corporate and related fiduciary services.
EP posted adjusted EBITDA of €2.5m last year. Its gross assets totalled €1.9m at year-end 2018.
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The maximum consideration for the deal is €34m, which includes an initial payment of €25m.
JTC will offer the initial amount through a cash payment of €18.34m and issuance of 1,925,650 new ordinary shares.
The firm also agreed to pay an earn-out next year.
This payment will be done in 70% cash and 30% shares, depending on the performance of the acquired entity.
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By GlobalDataEP founder Joost Mees said: “Together, we are confident about increasing our footprint in the corporate and alternative investments market in Luxembourg and beyond.”
The deal, according to JTC, will be “immediately earnings enhancing”.
A total of 28 EP staff, including its principals, will become part of the JTC Institutional Client Services team in Luxembourg as part of the deal.
JTC CEO Nigel Le Quesne said: “As such, this acquisition is reflective of our focus on high quality growth and on strengthening our proposition for institutional clients.
“The management team at Exequtive Partners has built a successful business based on very similar principles to JTC, making it an excellent cultural fit for us whilst also enabling Exequtive Partners to become part of an established global network that remains focused on client service excellence.”
JTC has been on a buying spree lately.
In 2018, the firm announced the acquisitions of Jersey-based fund administrator Minerva and Dutch corporate services firm Van Doorn.
The purchase of EP boosts its presence in Luxembourg, where it has been operating for a decade.
The firm recently secured a depositary licence from the country’s ministry of finance.
