SANNE Enters into Agreement to Acquire Leading Mauritius-based Fund and Corporate Administration Business
ST HELIER, Jersey, November 30, 2016
ST HELIER, Jersey, November 30, 2016 /PRNewswire/ –
Acquisition provides SANNE with significant emerging markets platform
SANNE, the specialist provider of outsourced corporate, fund and private client administration, reporting and fiduciary services, is pleased to announce that it has entered into an agreement to acquire International Financial Services Limited and IFS Trustees (“The IFS Group”) for a total consideration of approximately $127.3m (£101.9m).
The IFS Group is a leading Mauritius-based provider of fund and corporate administration services to corporates and alternative asset managers. Founded in 1993, the IFS Group provides services to more than 1,000 global entities, and has assets under administration in excess of $82 billion. The IFS Group has a large existing revenue base across funds and corporate structures for investment into India and Africa. The IFS Group has a largely institutional client base, with a high concentration of assets under administration being funded from the US or Cayman. The IFS Group is highly profitable and cash generative, reporting operating profit of US$18.4m in 2015 at an operating profit margin of c.65% and operating cash conversion of c.100%.
Mauritius is one of the leading international financial centres for foreign investment into Africa and India. This acquisition provides SANNE with a significant platform from which to expand the Group’s exposure to the emerging markets and to clients looking for support with their emerging markets structuring requirements. The IFS Group will form the core of a standalone division operating as SANNE’s new emerging markets-focused platform.
The consideration for the acquisition will be satisfied through a payment of approximately US$91.1m (£72.9m) in cash, which will be financed through the net proceeds of a capital raising, and the issue of approximately 5.8 million consideration shares, representing approximately 4.1 per cent. of the Group’s enlarged share capital following completion of the capital raising and completion.
The Acquisition is expected to be immediately earnings enhancing. It is conditional upon, among other things, SANNE shareholder approval, receipt of proceeds from the capital raising and regulatory clearance, and is expected to complete in Q1 2017.
Dean Godwin, Chief Executive Officer of Sanne Group plc, commented:
“This acquisition enables SANNE to further realise its ambition of building a leading, global business. The IFS Group is highly profitable, with a service offering and client base extremely complementary to SANNE‘s. Mauritius is one of the leading international financial centres for foreign investment into Africa and India and this transaction provides us with a significant platform to both support clients in these attractive regions and grow our emerging markets presence. I am delighted to welcome the IFS Group team to SANNE and we are excited about the opportunities to come.“
Couldiplall Lala, Founder Director of the IFS Group commented:
“We are extremely proud of the business that we have established over the past 20 years and, whilst Sanne is a large organisation with global reach, they share many similarities with our business, in particular the value they place on client service. We look forward to being an integral part of the next phase of growth.“
For more information about SANNE and the IFS Group, please visit
Sannegroup.com / sannegroupplc.com / ifsmauritius.com
About Sanne Group plc
SANNE is a specialist global provider of outsourced corporate, fund and private client administration, reporting and fiduciary services. Established for over 25 years and listed on the Main Market of the London Stock Exchange, SANNE employs more than 700 people worldwide and administers structures and funds that have in excess of £100 billion of assets. Key clients include alternative asset managers, financial institutions, family offices, UHNWIs and corporates. SANNE has a presence in established international financial centres spread across the Americas, Europe, Africa and Asia-Pacific.
About the IFS Group
The IFS Group is one of the pioneers of the global business industry in Mauritius. With over 20 years of experience in the sector, IFS has built expertise and excellence in structuring, set-up and administration of Investment Funds, Trusts, Partnerships, Foundations and Special Purpose Vehicles. The IFS Group provides compliant and cost-efficient solutions that deliver investor protection, capital efficiency as well as administrative and compliance ease to our clients. It also provides third-party administration services for funds registered in other jurisdictions.
1. Assumes a GBP:USD exchange rate of £1:$1.2493
SOURCE Sanne Group plc