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July 29, 2021updated 30 Aug 2021 8:45am

PraxisIFM offloads fund administration arm to Sanne Group

By Verdict Staff

PraxisIFM Group has agreed to divest its fund administration division to Sanne Group in an all-cash deal in excess of £50m.

The deal, subject to regulatory approvals, amounts to 20% of PraxisIFM’s overall business revenue.

Guernsey-based PraxisIFM said that the move is part of its strategy to focus on developing its core divisions of private wealth and corporate services as well as its pension administration offering.

The transaction will see the transfer 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.

PraxisIFM CEO Robert Fearis said: “We very much see this agreement with Sanne as an opportunity to energise the Group by equipping it for the future and making PraxisIFM truly competitive in a rapidly developing market.

“As we enter our 50th anniversary year, this will enable us to focus on our core areas of Private Wealth and Corporate Services, setting the direction of the business and building a resilient business model that shareholders and future investors will appreciate.”

Fearis also added that the business will continue to flourish under the ownership of Sanne.

PraxisIFM plans to use the proceeds from the deal to minimise its bank borrowings, and return the company to a progressive dividend policy.

Sanne CEO Martin Schnaier said: “The PraxisIFM Fund Administration business is a step-change acquisition for Sanne and we are delighted to have successfully concluded this deal swiftly to maximise the opportunities that are presented.

“The synergies between the two businesses are clear and we will seek to not only maintain existing levels of service to clients of PraxisIFM but enhance them as the assets and relationships transfer over to us.”

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