Electra Private Equity has announced it will sell its holding in fiduciary services company Elian to corporate services provider Intertrust for 435 million pounds (US$633 million).
The agreement still requires regulatory and shareholder approval.
Elian was formed in June 2014 after a management buyout, backed by Electra, of Ogier Group’s fiduciary services. Electra bought the business for 180 million pounds (US$262 million) and injected a further 81 million pounds (US$118 million) in equity.
The Jersey-headquartered Elian has more than 600 professionals in 15 offices around the world, including Cayman.
Global trust and corporate services provider Intertrust has 37 offices in 26 jurisdictions across Europe, Asia, the Middle East and the Caribbean. The company is listed on Euronext Amsterdam.
Following the acquisition, Elian will represent about 25 percent of the combined group.
The company will benefit from the long-term stability of being part of a listed entity and the increased geographic scale and diversification, Elian said in a press release.
Elian CEO Paul Willing said, “Our combined service offering and network of offices globally will broaden and strengthen our capabilities to support our clients in all key international business locations.”
For Intertrust, Elian’s capabilities and geographic presence will reinforce Intertrust’s in several important jurisdictions, especially in Jersey, said Intertrust CEO David de Buck.
The deal will increase Intertrust’s scale in the U.K., Ireland and Spain and further consolidate its position in Cayman, Guernsey, Luxembourg and the Netherlands, the group noted in a statement.
The acquisition also presents an opportunity for Intertrust to significantly expand its capital markets and private equity and real estate fund administration services, he added.
“Consolidation in our industry continues, and the ability of global trust and corporate services providers to acquire high quality companies will determine their success going forward,” Mr. de Buck said.
He added, “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 sale is expected to be concluded in the second half of the year.
“We know Intertrust shares our belief that our people are our most valuable asset,” Mr. Willing said. “The opportunities for career development, as well as the leadership and international mobility programs will make our tie-up with Intertrust especially interesting for our employees.”