JTC PLC on Tuesday said it plans to buy FFP (Holdings) Ltd for up to $110.0 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 $70.0 million initially, comprising $56.0 million in cash and $14.0 million in new JTC shares.
A further earn-out of up to $40.0 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 $30.7 million in revenue and recorded an adjusted net income of $16.9 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.’
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