JTC has announced plans to acquire FFP, a provider of specialist fiduciary services to fund, trust and corporate clients, for a maximum consideration of $110m.
The total consideration is made up of a $70m initial consideration comprising $56m in cash and $14m in new JTC ordinary shares, as well as a further earn-out of up to $40m, which will be payable in cash and JTC ordinary shares on the achievement of specific performance targets for the period ending 31 December 2024.
The acquisition remains subject to final regulatory approvals and satisfaction of other customary closing conditions and will be funded from the group’s cash reserves and existing debt facilities.
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.
The acquisition would, says JTC chief executive Nigel Le Quesne, “broaden JTC’s scope of expertise and form a core pillar of the firm’s new governance services proposition”.
The move would also, he said, “cement JTC’s leadership position in the Cayman Islands”, one of the leading global financial jurisdictions for the funds and trust markets.
The senior management team at FFP, all of whom have more than 15 years of experience in handling complex fund and trust situations, would remain with JTC.
Mr Le Quesne, added: “We are excited to welcome the whole FFP team to the JTC family. 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. As always, cultural alignment is key and, like JTC, FFP consistently invests in its people and capabilities.”
Michael Pearson, co-founder and partner of FFP, said: “We are really grateful for the support of our team, clients and legal contacts who have championed us over the last decade. With their backing, FFP has been able to help lead and change the way stakeholders approach complex and demanding situations in our markets.
“The speed of change and increasing globalisation of financial services means that well-invested infrastructure and a broad network are increasingly important. Joining the JTC Group provides us with access to a global platform that encompasses all key financial centres and we are relishing the prospects and opportunities this creates. That Nigel and team have astutely developed and led JTC for over 30 years was a very important factor for us in coming on board.”
