JTC, a provider of fund, corporate and private wealth services, has agreed to acquire Van Doorn from International Capital Group for a maximum consideration of €21.5m.
Amsterdam-based Van Doorn offers corporate and related fiduciary services. The business reported EBITDA of €1.2m and gross assets of €0.8m for the year ended 31 December 2017.
The transaction is expected to be wrapped up by October this year, subject to regulatory nod. JTC expects the deal to be “immediately earnings enhancing”.
The initial deal consideration is €16m, of which 69% will be paid in cash and the remaining through the issue of new JTC shares.
The earn-out, if payable, would depend on Van Doorn’s 2018 performance and paid in cash next year.
The deal forms part of JTC’s growth plans revealed at its IPO in March this year. JTC will finance the cash portion of the deal using its existing facilities and operating cash flows.
As part of the deal, a total of 16 staff from Van Doorn will join JTC’s institutional client services team in Amsterdam. The acquired entity’s principal managers Aravind Ramanna and Eke Verbeke will also migrate to JTC.
JTC CEO Nigel Le Quesne said: “Van Doorn is a high-quality, fast-growing business that is an ideal bolt-on to our Institutional Client Services (ICS) Division and which strengthens and enlarges our Netherlands platform. The management team has built a successful business based on very similar principles to JTC and this deal allows Van Doorn to become part of a larger, established global network, while retaining its focus on sophisticated solutions and client service excellence.
“I am also pleased that the owner managers of the business will be moving to JTC as part of the transaction and bringing with them not only their wealth of experience and relationships, but also an energetic approach and strong appetite to drive future growth.”
JTC tends to institutional and private clients through operations in over 17 jurisdictions. The business has over 550 employees and oversees $85bn in assets.