Electra has signed an agreement to divest its holding in leading fiduciary services company, Elian, to global high-value trust and corporate services provider, Intertrust, for a consideration of £435m.
Elian provides specialist services in: capital market solutions; private equity, real estate and fund administration; corporate services; private client solutions and employee benefit solutions from 15 offices across the globe. Headquartered in Jersey, Elian has over 600 professionals, all of who are specialists in their field, able to support or handle large, demanding or complex engagements and deliver high level of client service with a robust approach to increasingly complex regulation and compliance. The company has a track record of delivering revenue and profit growth and has, since June 2014, been majority owned by Electra.
Intertrust has 37 offices in 26 jurisdictions across Europe, Asia and the Middle East. It is a leading global services provider of high-value trust and corporate services and is listed on Euronext Amsterdam (ticker symbol INTER). The group's stated M&A strategy is to increase scale, add complementary services and expand its footprint – the acquisition of Elian fulfills these objectives well. Specifically, Intertrust is looking to bolster its capabilities in capital markets and fund administration and diversify its geographic reach in important jurisdictions like Jersey. This, combined with Elian's excellent management team, highly talented employees and robust approach to regulation and compliance, makes it an attractive addition to the Intertrust group.
Post acquisition, Elian will comprise c.25% of the combined group and will benefit from the long term stability that being part of a listed entity provides, as well as increased geographic scale and diversification in line with its long term strategic goals.
Elian CEO Paul Willing commented: ‘Elian has built an exceptional reputation based on delivering first-rate fiduciary services across multiple jurisdictions. Our employees are experts in their fields and are well respected in both the finance industry and, more importantly, by our clients and intermediaries. Joining the Intertrust group gives us long term stability as well as increased scale and geographic reach, which will be hugely beneficial to our clients. Our culture, services and global footprint are a perfect fit for Intertrust's and we are looking forward to growing our business together.’
Intertrust CEO David de Buck added: 'I am particularly pleased that Elian is becoming part of the Intertrust family. The addition of Elian's capabilities and geographic presence diversifies and reinforces Intertrust's services in several important jurisdictions, and specifically it brings us the leadership position in Jersey. Our similar cultures and approach to client service and compliance, coupled with increased scale and broader capabilities, means that together with Elian we can offer more to our clients and investors worldwide.'
The transaction is expected to close later in 2016 and is conditional upon customary regulatory approvals and an Extraordinary General Meeting approval for Intertrust.