TEAM, a Jersey-based asset wealth and asset management firm, has acquired Channel Islands-based JCAP for a net consideration of up to £2.95m.
The company will pay £2,212,501 of the total consideration in cash and £737,499 in newly issued shares.
JCAP, which trades as JCAP Treasury Services, provides cash management services to institutions, professional advisers, trustees and high-net-worth (HNW) individuals.
The deal adds over £1.3bn in assets under advice to TEAM. It is part of the company’s strategy to acquire wealth, asset management and complementary financial services business and expands its footprint in home market of Jersey.
Furthermore, the addition of JCAP is also expected to provide synergistic revenue growth opportunities for the company through providing cash management services to its client base.
It will also add the potential to launch cash management products through the regulated fund business of TEAM.
TEAM executive chairman Mark Clubb called JCAP a natural fit with the group’s plans for the development of TEAM.
Clubb added: “Cash management is a complementary service for many of our current and future clients, and JCAP is the leading provider of these service in the Channel Islands.
“We are currently in a period of historically low-interest rates where yield optimisation on cash balances generates minimal returns.
“Against this market background JCAP is a highly profitable business, and if interest rates increase, as seems likely, this will add significant momentum to profits as clients seek out JCAP’s services to improve returns and risk management on their and clients’ cash holdings.”
Founded in 2001 as a fund business, TEAM was re-established as TEAM Asset Management by Ben Shenton in 2005.
Last year, the company was acquired by Ponterrin, founded by Mark Clubb as principal shareholder.
Following the deal, Shenton became the company’s chairman, and Clubb as managing director.