Sanne Group, a provider of outsourced corporate and fund administration, reporting and fiduciary services, has agreed to purchase Mauritius-based International Financial Services (IFS) and its trustees for $127.3m.
Established in 1993, IFS is a fund and corporate administration services provider to corporates and alternative asset managers. The company offers services to over 1,000 global firms, and manages more than $82bn in assets under administration.
Under the agreement, IFS will form the core of a standalone division operating as SANNE's new emerging markets-focused platform.
The consideration will be satisfied through a payment of nearly $91.1m in cash, through the net proceeds of the capital raising, and the issue of nearly 5.8m consideration shares, representing around 4.1% of the company’s enlarged share capital.
MCB Capital Markets, the investment banking arm of MCB Group, acted as transaction advisor to Sanne Group.
The transaction, which is subject to SANNE shareholder approval and regulatory clearance, is expected to complete in the first quarter of 2017.
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Sanne Group CEO Dean Godwin said: "This acquisition enables SANNE to further realise its ambition of building a leading, global business. The IFS Group is highly profitable, with a service offering and client base extremely complementary to SANNE's.
“Mauritius is one of the leading international financial centres for foreign investment into Africa and India and this transaction provides us with a significant platform to both support clients in these attractive regions and grow our emerging markets presence. I am delighted to welcome the IFS Group team to SANNE and we are excited about the opportunities to come."
IFS Group founder director Couldiplall Lala said: "We are extremely proud of the business that we have established over the past 20 years and, whilst Sanne is a large organisation with global reach, they share many similarities with our business, in particular the value they place on client service. We look forward to being an integral part of the next phase of growth."