Mon, 15 Feb 2021 | BUSINESS SALE
Global fund, corporate and private client services provider JTC has acquired UK-based depositary INDOS Financial and its subsidiaries in a £12.5 million deal.
The deal involves an initial £11 million consideration, £10 million of which is via cash and £1 million via JTC equity. There is also a deferred consideration of £1.5 million, available on the achievement of performance targets.
INDOS was founded in 2012 and is a specialist in depositary provision and ESG (Environmental, social and governance) and AML (anti-money laundering) oversight for alternative investment funds. Its client assets under depository, as of December 2020, were $35 billion (£25.1 billion).
The firm has grown organically since it was founded and now employs over 50 staff across three locations in the UK and Ireland. It has a diverse client book, featuring leading UK and international alternative investment funds. In the year ending December 31 2020, INDOS recorded revenue of £3.7 million.
The acquisition is JTC’s fourth bolt-on acquisition since 2018 and forms part of its ongoing growth strategy of enhancing the organic growth of its core business with inorganic growth drive by an acquisition and integration strategy.
Following the acquisition, all of INDOS’s employees, including founder and CEO Bill Prew, will join JTC’s Institutional Client Services (ICS) Division. The deal, which is subject to FCA approval, is expected to close by the end of March 2021.
JTC CEO Nigel Le Quesne said: "INDOS is a business of real quality which operates in a strategically important part of the fund services market. Having collaborated with Bill and the team several times, it is clear that their deep expertise, commitment to service excellence and proven ability to innovate and grow makes INDOS a great addition to the JTC platform.”
“The transaction also adds further scale in Ireland, a priority market for the Group, and the UK, where our London team has more than doubled in size over the last 18 months due to client demand. We offer a warm welcome to our new colleagues and are excited to bring the benefits of the acquisition to existing JTC clients and to providing INDOS clients with an even richer suite of global services and the full backing of the JTC Group.”
INDOS CEO Bill Prew added: "Having grown organically since 2012, we understand what it takes to create value through building long-term client relationships based on service quality and expertise. We share much of our cultural DNA with JTC and their focus on clients, innovation and technology mean that we are very excited about our future as part of the Group. I am also delighted that all members of the INDOS team will become shared owners of JTC.”
This established IFA is assigned to one major platform ensuring a very smooth transition of client assets.
This is a highly profitable business with EBIT percentage of 33%, meaning money can be recouped quickly after a purchase.
With advisers and back-office staff in place, this business can be purchased and will keep running efficiently.
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