JTC buys provider of fiduciary services FFP for up to USD110 million

(Alliance News) - JTC PLC on Tuesday said it plans to buy FFP (Holdings) Ltd for up to USD110.0 ...

Alliance News 18 June, 2024 | 5:18PM
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(Alliance News) - JTC PLC on Tuesday said it plans to buy FFP (Holdings) Ltd for up to USD110.0 million.

JTC is a Jersey-based professional services firm. Its shares closed up 2.9% to 898.29 pence each in London on Tuesday.

"Founded in 2012, FFP is privately owned and headquartered in the Cayman Islands, with further offices in the BVI and Dubai. The business provides a range of specialist fiduciary, restructuring, trustee, fund administration and corporate services to clients across the globe, with a focus on complex engagements," JTC said.

JTC said it will pay USD70.0 million initially, comprising USD56.0 million in cash and USD14.0 million in new JTC shares.

A further earn-out of up to USD40.0 million will be payable in cash and JTC ordinary shares on the achievement of specific performance targets in 2024.

JTC said the acquisition "enhances and differentiates" the range of fiduciary services JTC can offer to existing and new clients, serving to expand the company's overall addressable market.

In 2023, FFP generated USD30.7 million in revenue and recorded an adjusted net income of USD16.9 million.

JTC expects the purchase to be accretive to company margins and to earnings per share in 2024 and will deliver high-single digit accretion to EPS in 2025.

Chief Executive Nigel Le Quesne said: "FFP has an excellent reputation and significant subject matter expertise with strength in depth across the team. We believe that access to JTC's global platform will accelerate FFP's growth prospects with substantial opportunities across the group as we develop our Governance Services business line. The combination of our businesses will cement our leading position in the Cayman Islands, which is one of the pre-eminent financial jurisdictions globally."

By Sophie Rose, Alliance News senior reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
JTC PLC Ordinary Shares 1,046.00 GBX 1.75 -

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