Jersey-based fund services provider JTC PLC is acquiring Luxembourg-based Exequtive Partners SA from Primitivo SARL, De Gorzen SARL, Tika Holdings SARL, Pimpiri SARL and Stichting Administratiekantoor Employee Benefit Jomaroma.
The sellers primarily represent the principals of Exequtive, who will join JTC with immediate effect. Exequtive's 28 employees will join the JTC institutional client services team in Luxembourg.
The initial consideration for the acquisition is €25 million, to be satisfied with €18.34 million in cash and the issue of 1,925,650 new ordinary shares in JTC. There is also an earn-out provision based on Exequtive's performance in the year to Dec. 31, 2019, with an absolute cap on total consideration of €34 million.
JTC expects the acquisition to immediately enhance earnings, and it said Exequtive made a profit of €61,000 in full year 2018, on adjusted EBITDA of €2.5 million. Exequtive, a provider of corporate and related fiduciary services, had gross assets of €1.9 million at the end of 2018.