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RNS Number : 7290H
Sanne Group PLC
07 December 2020
7 December 2020
Sanne Group plc
(Sanne or the Group)
Acquisition and trading update
Sanne, the global provider of alternative asset and corporate
services, today announces the accretive acquisition of Private
Equity Administrators Group ("PEA").
In addition, the Group expects to deliver underlying EPS for the
year ending 31 December 2020 in-line with expectations, despite the
market backdrop remaining uncertain.
Acquisition and M&A Opportunity
Sanne is pleased to announce that it has entered into an
agreement to acquire PEA, a leading Scandinavian and Guernsey
private equity fund administrator, from its founders who will stay
with Sanne. It adds over 55 employees and over EUR27bn of assets
under administration to Sanne, with offices in Denmark, Sweden and
Guernsey. Both Sanne and PEA have a close cultural alignment
sharing a strong focus on delivering high quality client
service.
PEA is a strategically important acquisition that will further
expand Sanne's geographical footprint introducing a new physical
presence in the important Scandinavian markets of Denmark and
Sweden, which have strong underlying growth characteristics. The
acquisition will also provide an opportunity to increase the scale
of the Group's Guernsey operations and client base.
The acquisition has been agreed with an upfront consideration of
EUR27m, of which 30 per cent will be payable in Sanne shares, and
cash earn-out components based on performance up to the end of
2022, capped at EUR3.25m. PEA is expected to deliver revenues of
c.EUR6.7m and EBITDA of c.EUR2.1m for the year to 31 December 2020.
For the year to 31 December 2019 the business had profits before
tax of EUR1.5m and gross assets of EUR2.7m. The acquisition should
complete by the end of Q1 2021, subject to regulatory clearance.
The transaction is expected to be immediately earnings
enhancing.
This is the fourth acquisition that Sanne has announced this
year with the Group continuing to work actively on a healthy
pipeline of potential transactions. The Group remains disciplined
in its approach to acquisitions, focusing on executing transactions
that are accretive to the Group's long-term strategic vision and to
value.
Trading Update
Sanne has continued to trade resiliently through the second half
of the year and expects to deliver underlying EPS in-line with
expectations. The Group has also begun to see increased client
activity converting into new business wins during Q4.
The market backdrop has continued to be impacted by the on-going
COVID-19 pandemic, as well as additional uncertainty relating to
the US elections and Brexit negotiations. Accordingly, the delays
to fundraisings and closings as well as the reduced transaction
levels, seen throughout Q2, continued in Q3. Although existing
client activity has latterly begun to increase in Q4, full year
revenues are consequently expected to be marginally below the
Board's previous expectations .
Despite the delay to fundraising and closings, we again expect
to deliver a robust new business performance with new wins
anticipated to be similar to the first half, which had benefited
from a largely unaffected market through Q1. This result will
provide good growth momentum for 2021 and beyond.
The medium and long-term structural growth drivers for the
industry remain strong and we expect market conditions to improve
over time now that several effective COVID-19 vaccines will be made
available. While the timing of this improvement remains difficult
to assess, the continued investment in our client proposition,
technology-led services and operational platform will ensure that
Sanne is well-positioned to capture the growth opportunities as the
market recovers.
The Group continued to exercise rigorous cost control and
operational discipline during the year and as a result expects
underlying operating margins within its guided range. The business
also continues to benefit from high levels of cash conversion.
Notice of 2020 Results
The Group expects to announce its full year results for the year
to 31 December 2020 on Friday 19 March 2021.
Enquiries:
Tulchan Communications LLP +44 (0) 20 7353 4200
Tom Murray
Harry Cameron
Sanne Group plc +44 (0) 20 3327 9720
Martin Schnaier, Chief Executive Officer
James Ireland, Chief Financial Officer
Notes
Sanne is a leading global provider of outsourced alternative
asset and corporate business services. Established for over 30
years and listed as a FTSE 250 company on the Main Market of the
London Stock Exchange, Sanne employs around 1,800 people worldwide
and administers structures and funds that have in excess of GBP250
billion of assets.
Key clients include leading alternative asset managers, global
financial institutions, family offices and international
corporates.
Sanne operates from a global network of offices located in
leading financial jurisdictions, which are spread across the
Americas, Europe, Africa and Asia-Pacific.
This announcement may contain forward-looking statements.
Forward-looking statements sometimes use words such as "aim",
"anticipate", "target", "expect", "estimate", "intend", "plan",
"goal", "believe", "seek", "may", "could", "outlook" or other words
of similar meaning. By their nature, all forward-looking statements
involve risk and uncertainty because they relate to future events
and circumstances which are beyond the control of the Company. As a
result, the actual future financial condition, performance and
results of the Company may differ materially from the plans, goals
and expectations set forth in any forward-looking statements. Any
forward-looking statements made in this announcement speak only as
of the date they are made and the Company does not assume or
undertake any obligation or responsibility to update any of the
forward-looking statements contained in this announcement, whether
as a result of new information, future events or otherwise, except
to the extent legally required.
sannegroup.com
LEI Code: 2138005UBLKEZRITH576
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END
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December 07, 2020 02:22 ET (07:22 GMT)
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