Jersey’s Sanne Group to acquire Mauritius-based IFS for US$127.3m
Sanne Group, a LSE-listed, Jersey-based provider of outsourced corporate, fund and private client administration, reporting and fiduciary services, said it has agreed to acquire a Mauritius-based company in the same business for US$127.3m (£100.8m,€120m), as it looks to expand its geographical footprint.
The business it’s acquiring is International Financial Services Ltd and IFS Trustees, which group was founded in 1993, and which administers assets in excess of US$82bn for more than 1,000 global entities, according to a statement announcing the deal.
In particular, the IFS Group specialises in providing a base for funds and corporate structures that are investing into India and Africa, the statement noted, particularly institutions originating in the US and Cayman Islands.
Mauritius is an island of 2,040sq km (roughly three and a half times the size of the Isle of Man, or almost 18 times the size of Jersey) located in the Indian Ocean, which has become an increasingly important international financial services jurisdiction, owing in part to its location. It’s east of Madagascar, and southwest – by a distance of 5,094km/3,165mi – of India.
In the statement announcing the acquisition, Sanne said the purchase is to be carried out through a US$91.1m cash payment, which will be financed through net proceeds of capital raising. The deal is expected to complete in the first quarter of next year.
The IFS acquisition is Sanne’s fourth to be announced or completed thus far this year. In the first half it acquired a Dublin-based corporate services provider known as Chartered Corporate Services, which it said would compliment its existing operations in Ireland; and IDS Fund Services, a company headquartered in South Africa that provides outsourced investment administration services to the asset management industry, particularly hedge fund managers.
It is also in the process of acquiring Sorato Trust BV, a Netherlands-based domiciliation and associate corporate services business that has been Sanne’s business partner in the Dutch market for more than five years.
Sanne was established in Jersey in 1988, and originally was a private client fiduciary services provider.
A corporate funds services business was added in 2003, and other categories of corporate services were added over the next few years. The company began to expand internationally in 2007 and 2009, with the opening of offices in Luxembourg and Dublin; Hong Kong, Shanghai and Dubai outposts followed in 2010. It listed on the London Stock Exchange in 2015.
The company now operates across 11 jurisdictions, and is headed up by Dean Godwin, who was named chief executive in 2012.