PraxisIFM Group has received regulatory approval to continue the sale of its fund administration division to Sanne Group in an all-cash deal totalling £54m.

The deal was first announced by the firm in July this year.

The move is part of Guernsey-based firm’s effort to strengthen its focus on its core divisions – Private Wealth and Corporate Services.

PraxisIFM plans to return a significant amount of the proceeds from the sale to shareholders. The balance will be used by the firm to initially reduce bank borrowings.

It will also support the firm’s ongoing expansion of the business and focus on technology.

The company said that it will announce further details of the capital return in the coming weeks.

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PraxisIFM chairman and non-executive director Iain Torrens said: “Today marks the start of a new era for PraxisIFM, presenting the opportunity to leverage our strong reputation as a trusted partner and the deep skills and experience that exist across our international team.

“As we move into our 50th anniversary year, our increased focus on private wealth and corporate service clients, coupled with the ability to invest in our people and technology, provides a sound foundation from which to accelerate our growth. It also better equips us to meet the ever-changing needs of our clients by delivering new and innovative solutions.”

Transaction details

PraxisIFM’s fund administration division is said to contribute to 20% of the group’s overall business revenue.

The sale entails the transaction of approximately £25bn of funds under administration (AuA) manged by offices in Guernsey, London, Malta, Jersey, and Luxembourg.

Around 90 members of the company’s 480 workforce will also join Sanne.